Suntech Power Holdings Co. Ltd., an international manufacturer of photovoltaic (PV) cells and modules, has entered into a first-phase agreement with Nitol Solar Ltd., a manufacturer of chemical components for the solar industry, to supply polysilicon to Suntech over a seven-year period beginning in 2009.
According to the companies, the agreement provides for the delivery of predetermined volumes of polysilicon each year at fixed prices for the initial term – with a portion of supply in later years subject to reduction within a price band in the event that prevailing spot market prices at that time are reduced.
The agreement also provides for an initial deposit to Nitol Solar upon signing and requires that Suntech make additional prepayments for products subject to Nitol Solar's successful achievement of certain facility development and production volume milestones and other conditions.
