Hsin-Chu, Taiwan [RenewableEnergyWorld.com] Neo Solar Power (NSP), a manufacturer of solar cells, announced that it has sealed a 7-year wafer supply contract with REC ScanWafer AS. Under the contract, REC will provide NSP with solar wafers for the period from January 1, 2009 to December 31, 2015.
The contract with REC is valued at US $442 million and NSP said that it entered the deal in part to guarantee that it will have experience less supply side volatility moving forward. NSP also announced that is has signed several long term sales contracts, including its first 5-year solar cell contract with module makers in Taiwan.
NSP said that it will benefit from the terms of its deal with REC because the volume of deliveries increase quarter by quarter while prices decrease quarter by quarter. The company also said that it expects a growth in its financial performance in second half of 2008 compared with the first half.