Solar

China Sunergy & Hitachi Sign 210-MW Silicon Ingot Supply Deal

China Sunergy Co. Ltd. announced that it has entered into a multi-year agreement for the supply of eight-inch single crystal silicon ingot with the Hitachi High-Technologies Corporation (HHT). Under the agreement, HHT will supply a total volume of 1,472 tons of silicon ingots from September 2008 through the end of 2011. The ingots will be used in the production of approximately 210 megawatts (MW) of solar cells during the contractual term.

Shipment of silicon ingots began in September and while the pricing has been fixed for the 2008 shipments, China Sunergy and HHT will negotiate the ongoing price of the silicon ingots every three months beginning in 2009, within a predetermined pricing range.

“This long-term partnership with a respected supplier such as HHT allows us to reduce our reliance on obtaining silicon material supplies from the volatile spot market,” said Allen Wang, CEO of China Sunergy. “In addition to the high quality silicon ingot improving our yields and output, I believe there are cost savings to be recognized from this deal which will contribute to the long term goal of strengthening our gross margin. We will continue to seek additional agreements with partners like HHT, as they will benefit China Sunergy by providing a reliable source of silicon through a flexible, favorable cost structure.”