San Francisco, United States [RenewableEnergyWorld.com] Suntech Power Holdings Co., Ltd. announced that it has acquired a minority stake in Shunda Holdings Co. Ltd, a manufacturer of solar wafers based in China, for a total consideration of US $98.9 million. Suntech also announced that a thirteen-year silicon wafer supply agreement has been signed with a subsidiary of Shunda Holdings Co. Ltd.
Under the terms of the supply agreement, Shunda will supply Suntech specified annual volumes of silicon wafers with a total volume of approximately 7 gigawatts (GW) from 2008 to 2020.
“This strategic investment and long term supply agreement will be instrumental in the profitable and rapid growth of both Suntech and Shunda. This is another example of how we can leverage funds raised through our recent convertible notes offering to pursue strategic investments and high volume contracts that strengthen the long term cost structure of our business model,” said Dr. Zhengrong Shi, Suntech’s CEO.