Evergreen & Jiawei Solar Break Ground on 100-MW Manufacturing Plant

The plant’s construction actually began in July of 2009, and is on schedule to be completed by spring 2010. The facility is part of an agreement between Evergreen Solar and Jiawei through which Evergreen Solar will manufacture String Ribbon wafers using its state-of-the-art Quad furnaces at this leased facility being built on Jiawei’s campus. Jiawei will convert the String Ribbon wafers into Evergreen Solar-branded panels on a contract manufacturing basis.

"Today represents an important step in the growth of Evergreen Solar,” said Richard Feldt, president and CEO of Evergreen. ”When you combine Evergreen Solar’s unique wafer technology and Jiawei’s high quality, cost efficient cell and panel conversion processes, we believe we have a winning formula that will produce the best performing and lowest cost multi-crystalline solar panels in the world. We’re extremely pleased that construction proceeds according to schedule and look forward to beginning production of our String Ribbon solar panels in the spring of 2010.”

Evergreen Solar will invest US $17 million in cash and equipment in the Wuhan String Ribbon operation. Wuhan Government's Hubei Science & Technology Investment Co. Ltd. will provide Evergreen Solar $33 million of 7.5% financing, which Evergreen Solar must repay no later than July 2014.

The companies intend to expand production capacity of their respective manufacturing operations to approximately 500 MW by 2012, the timing and extent of any potential expansion will be determined in 2010.

Evergreen Solar and Dynamic Green Energy Ltd., Jiawei’s parent company, have agreed to exchange warrants representing 1% of their outstanding shares. These warrants will have a five-year term and may be exercised for 20% of the warrant shares for each incremental 95 MW of production capacity achieved.