Solar

ATS Secures Polysilicon Supply Contract with WACKER Chemie AG

ATS Automation Tooling Systems Inc. announced on Tuesday that its Photowatt France subsidiary has entered into a multi-year agreement to purchase high-purity polysilicon from WACKER Chemie AG. Under the agreement, WACKER will deliver polysilicon to support approximately 14 megawatts of Photowatt solar production annually.

Deliveries are expected to begin in January 2010 and continue for a nine year period. The agreement requires advance payments that will be covered by a portion of the proceeds raised from ATS’s recent rights offering. For competitive reasons, the terms of the contract were not released but management believes they are similar to other long-term contracts recently secured in the solar industry.

“This polysilicon contract is an important next step in our plan to continue to strengthen Photowatt in advance of its spin out,” said Ron Jutras, ATS president and CEO. “The agreement significantly improves our access to scarce polysilicon by providing us with a contracted supply from a highly respected global supplier at attractive long-term supply prices. It also clearly establishes an important strategic supply relationship between Photowatt and WACKER which we intend to build upon.”

The contract announced this week is the fourth major long-term silicon agreement Photowatt has signed in recent months. It previously announced two long-term supply agreements with Deutsche Solar AG for the supply of polysilicon wafers and a long-term supply agreement for refined metallurgical silicon with Dow Corning.