SunTech Power Holdings (STP), a Chinese solar energy company that develops a variety of photovoltaic (PV) cells and modules, signed a long-term silicon wafer supply contract. This should ease fears about a silicon supply crunch.
The contract is with Wacker SCHOTT Solar GmBh, a joint venture of Wacker Chemie AG and SCHOTT Solar GmbH. The deal calls for 220MW in aggregate from 2008 to 2015, with only a small amount delivered in the first 2 years. The contract includes fixed prices and fixed quantities on a declining price curve. Financial terms were not disclosed.
The potential shortage of polysilicon has been a hot issue in the solar industry and AmTech views the agreement “an incremental positive given poly supply coming from a well positioned incumbent in Wacker Chemie.”
AmTech maintains BUY on SunTech Power Holdings (STP).
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