Suntech Power Holdings Co. Ltd., a manufacturer of photovoltaic cells and modules, has signed two agreements with a major Korean conglomerate to purchase silicon wafers.
The first agreement provides for the supply of silicon wafers over a one-and-a-half-year period beginning in January 2008 at a fixed price on a take-or-pay basis. The second agreement provides for the supply of predetermined volumes of silicon wafers over a seven-year period beginning in 2009, with a fixed-price reduction curve on a take-or-pay basis. Additionally, the agreement sets forth purchase options of Suntech's PV modules for power plant projects initiated by the Korean firm worldwide.
"We are delighted to establish this relationship for the supply of high-quality silicon wafers," says Dr. Zhengrong Shi, Suntech's chairman and CEO." The first agreement helps us to meet the significant surplus demand for Suntech's high-performance products in a silicon-constrained environment. The second agreement provides a reliable source of silicon at prices well below market rates and is a welcome addition to our growing silicon supply portfolio."