SunPower Corporation (Nasdaq: SPWR) has signed a multi-year polysilicon supply agreement with DC Chemical Co., Ltd. DC Chemical is a Korean chemical company with expertise producing gases used in polysilicon manufacturing.
Starting in 2008, the agreement calls for SunPower to purchase approximately $250 million of polysilicon over a four-year period from DC Chemical’s new facility, which is expected to manufacture 3000 metric tons of polysilicon per year. SunPower will support construction of the facility with a series of advanced payments over the next year. DC Chemical’s polysilicon supply will provide a guaranteed source of raw material to make ingots for SunPower’s high efficiency solar cells.
“SunPower is pleased to partner with DC Chemical as they extend their decades of experience in the chemical industry into polysilicon manufacturing,” said Tom Werner, CEO of SunPower. “The solar industry will benefit from new entrants like DC Chemical who can enable reliable, high- volume polysilicon supply in the near-term. This agreement is a major component of SunPower’s silicon supply portfolio strategy.”
“DC Chemical appreciates our new partnership with SunPower which will support the launch of our polysilicon manufacturing business,” said Mr. Hyunwoo Shin, DC Chemical’s Executive Vice-Chairman. “We see the solar industry as a tremendous long-term market and SunPower as an attractive partner due to their technological leadership.”
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