Suntech Power Holdings announced it 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 world-class PV modules for power plant projects initiated by the Korean firm world-wide.
Suntech's Chairman and CEO Dr. Zhengrong Shi stated, "We are delighted to establish this relationship for the supply of high quality silicon wafers. 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."
Dr. Shi continued, "We look forward to expanding our silicon supply relationship with this new partner and anticipate supplying Suntech's world- class PV modules for their power plant projects in the near future."
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future.
Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors.
Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China.
