SunPower Corporation (Nasdaq: SPWR), a leading solar panel manufacturer, has entered into a joint venture with Woongjin Coway to manufacture mono-crystalline silicon ingots.
The joint venture will operate in Korea, with polysilicon to be supplied primarily from DC Chemical, Korea’s largest chemical company, with whom SunPower previously announced a major supply agreement. SunPower expects to purchase approximately $250 million of silicon ingot from the joint venture through a five-year supply agreement, which SunPower expects to execute upon formation of the joint venture. The venture is expected to begin manufacturing in the second half of 2007, and is projected to grow at a rate consistent with increasing polysilicon supply from DC Chemical.
SunPower will contribute approximately $5 million of capital and technology expertise, and will sell polysilicon to the joint venture, and procure silicon ingot from the joint venture.
SunPower’s joint venture partner, Woongjin Coway, is a Korean equipment manufacturer and one of Korea’s leading providers of environmental products. Woongjin Coway will contribute a similar level of capital, as well as operations and Korean marketing expertise.
“SunPower is committed to expanding its silicon portfolio,” said PM Pai, chief operating officer, of SunPower Corporation. “Investing in a Korean- based ingot pulling enterprise with Woongjin Coway will leverage our DC Chemical polysilicon supply while capturing part of the value of this component of the supply chain.”
Loading...