REC has entered into a long-term agreement for the supply of multi-crystalline silicon wafers to Suntech, one of the largest and fastest growing solar cell and module manufacturers in the world.
REC has entered into a long-term agreement for the supply of multi-crystalline silicon wafers to Suntech, one of the largest and fastest growing solar cell and module manufacturers in the world. Under the agreement, REC will deliver wafers to Suntech worth approx. NOK 1.2 billion over the next 5 years.
REC, the world's largest manufacturer of multicrystalline silicon wafers for solar cells, has signed a long-term agreement with Sumitomo Corporation for the supply of wafers to Suntech Power Holdings Co., Ltd. The 5-year agreement, which is structured as a take-or-pay contract with a pre-determined price decrease on an annual basis, has a value of approx. NOK 1.2 billion (USD 180 million). Delivery of wafers under the new agreement starts from the first quarter 2007.
Sumitomo Corporation, with whom REC has had a long standing business relationship, will act as REC's commercial representative towards Suntech.
'This is the fourth long term agreement on wafers that REC has entered into since summer this year. Suntech, which is one of the fastest growing solar cell and module companies in the world, will become a new valuable strategic customer of REC, and this agreement further cements REC's position as the leading manufacturer of multicrystalline silicon wafers and strengthen our platform for further growth ', says Erik Thorsen, President & CEO of REC ASA.
Suntech, based in Wuxi outside Shanghai, China, is a leading solar energy company in the world measured by production volume of solar cells. Production capacity is expected to reach 270 MW by the end of 2006. Suntech is listed on the New York Stock Exchange.
'With this agreement we continue to broaden our customer base and we expect the agreement with Suntech to bring our products into new markets and applications', says John Andersen, Jr., Executive Vice President Wafers of REC ASA.
Including ongoing expansion projects, REC will double its current wafer production capacity to approx. 600 MW. As additional polysilicon becomes available from the expansion projects in REC Silicon, the contract portfolio of REC now forms the basis for further wafer expansion projects going forward.