First Solar Inc. has entered into new long-term module supply agreements with a subsidiary of Babcock & Brown and Ecostream Switzerland GmbH, a subsidiary of Econcern BV.
The new agreements expand contracted module volume by a total of 557 MW, allowing for additional sales of approximately $1 billion at an assumed exchange rate of $1.30/E1.00 over the period of 2008 to 2012. The agreements are structured on terms similar to First Solar's existing long-term supply agreements.
To meet the demand expected from the sales contracts, First Solar's board of directors has approved the construction of a fourth manufacturing plant in Malaysia with four production lines, bringing the total number of production lines to 16 for the Malaysian Manufacturing Center. The new plant is scheduled to start production in the second half of 2009 and will be built adjacent to the three previously announced plants currently under construction in Malaysia.
