WUXI, China, Dec. 18 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP) one of the world’s leading manufacturers of photovoltaic
(PV) cells and modules, today announced that it has entered into an agreement
with Sunlight Group Inc. to purchase silicon wafers over a 5-year period.
Sunlight is headquartered in the U.S. with China and Japan-based production.
The contract provides for increased volumes over the course of the term at
fixed prices for each year with an annual price review for each calendar
year. Based on existing contract prices, the value of the silicon wafers to
be supplied is approximately $366 million to $670 million.
“We are very pleased to enter into this agreement with Sunlight and look
forward to a long term, strategic relationship with them. It is exciting to
be able to secure yet another meaningful contract for silicon which will
enable us to achieve our ambitious growth targets during a time of
industry-wide silicon supply shortages. As all of these long term silicon
supply contracts are priced measurably below spot market prices, we will see
immediate cost savings when they take effect in 2007. Supply agreements such
as these enable us to be among the fastest growing, lowest cost providers of
PV products in the industry,” said Dr. Zhengrong Shi, Suntech’s chairman
and CEO.
This agreement with Sunlight combined with recent deals with suppliers
such as Comtec, MEMC and REC will enable Suntech to exceed its previous
expectation that 70% of its wafer supply needs for its projected 2007 PV cell
production output will be from fixed-price, multi-year contracts.
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by both production output and capacity of solar cells and
modules. Suntech provides solar solutions for a green future. Suntech
designs, develops, manufactures, and markets a variety of high quality, cost
effective and environmentally friendly PV cells and modules for electric
power applications in the residential, commercial, industrial, and public
utility sectors. Suntech’s majority-owned subsidiary, MSK Corporation is
one of Japan’s largest PV manufacturers and one of the top-ranked companies
in the building-integrated photovoltaics (BIPV) space. Suntech’s customers
are located in various markets worldwide, including key markets throughout
Europe, Japan, China and the United States. For more information, please
visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute “forward-looking” statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates” and similar statements. Among other things, Suntech’s
expectations with respect to the silicon supply agreement highlighted above
contain forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Further information regarding these and
other risks is included in Suntech’s filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F. Suntech does
not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required
under applicable law.
For more information, please contact:
Steven Chan
VP of Business Development
Suntech Power Holdings Co., Ltd.
Tel: +86-510-8531-8910
Email: ir@suntech-power.com
Rory Macpherson
Senior Associate
Ogilvy Public Relations Worldwide
Tel: +86-10-8520-6553
Email: rory.macpherson@ogilvy.com
