Sunways Terminates Polysilicon Plans

Sunways AG has said that it will not continue with the acquisition of a polysilicon production line. As of the end of 2007, Sunways had plans to acquire a polysilicon production line for use in a modular facility planned to be established in Saxony by the Schmid Group as general contractor. The down payment made at the time has already been refunded.

The company said that as the market stands today, the production of high-purity silicon as raw material for the manufacture of solar cells no longer is a strategically and economically reasonable option for Sunways. There are a number of polysilicon facilities that are set to come online this year and next year, in China, Germany and a number of other countries.

There is speculation in the industry that the increased supply from these new facilities will drive the price of solar-grade silicon down far below its current value, leading to a sharp fall in the cost of manufacturing and buying solar products.

In addition, Sunways AG terminated cooperation with Solarvalue AG, which also started in late 2007. The objective of this cooperation was the production of high-quality solar cells based on metallurgical silicon. Sunways did not, as originally planned, receive raw materials from Solarvalue AG for test solar cell production runs during the agreed to development period.

No further obligations of any kind will arise to Sunways AG from the termination of these two projects.

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