Suntech and REC Make $180 M Silicon Wafer Purchase

Wuxi, China [RenewableEnergyAccess.com] Suntech Power Holdings Co. entered into a $180 million agreement with Renewable Energy Corporation ASA (REC) to purchase silicon wafers over a five-year period. Sumitomo Corporation is acting as REC’s commercial representative for the deal.

The five-year agreement is structured as a take-or-pay contract with a pre-determined fixed price that decreases on an annual basis. This price reduction curve will provide Suntech with wafers with an average cost below spot-market prices. Delivery of wafers under the contract is expected to begin in the first quarter of 2007. ”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 strengthens our platform for further growth,” said Erik Thorsen, President & CEO of REC, which has a presence across the entire value chain.