China Sunergy Co., Ltd. (Nasdaq: CSUN), a solar cell manufacturer based in Nanjing, China, has entered into a multi-year agreement for a supply of 8-inch, single-crystal silicon ingot with the Japanese Hitachi High-Technologies Corporation and its affiliate (HHT). Under the agreement, HHT will supply a total volume of 1,472 tons of silicon ingot from September 2008 through the end of 2011, which will support the production of approximately 210 megawatts (MW) of solar cells during the contractual term.
Shipment of silicon ingots began in September 2008 and will continue through the end of 2011. While the pricing has been fixed for the 2008 shipments, China Sunergy and HHT will negotiate the ongoing price of silicon ingot every three months beginning in 2009, within a predetermined pricing range.
"This long-term partnership with a respected supplier such as HHT allows us to reduce our reliance on obtaining silicon material supplies from the volatile spot market," commented Mr. Allen Wang, CEO of China Sunergy. "In addition to the high quality silicon ingot improving our yields and output, I believe there are cost savings to be recognized from this deal which will contribute to the long term goal of strengthening our gross margin. We will continue to seek additional agreements with partners like HHT, as they will benefit China Sunergy by providing a reliable source of silicon through a flexible, favorable cost structure."
About China Sunergy Co., Ltd.
China Sunergy Co., Ltd. is a specialized manufacturer of solar cell products in China. China Sunergy manufactures solar cells from silicon wafers utilizing crystalline silicon solar cell technology to convert sunlight directly into electricity through a process known as the photovoltaic effect. China Sunergy sells solar cell products to Chinese and overseas module manufacturers and system integrators, who assemble solar cells into solar modules and solar power systems for use in various markets.
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