SAN FRANCISCO, Calif., Nov. 1 /Xinhua-PRNewswire/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of
photovoltaic (PV) cells and modules, today announced a first phase agreement
with Nitol Solar Ltd. to supply polysilicon to Suntech over a seven-year
period beginning in 2009.
The agreement provides for the delivery of predetermined volumes of
polysilicon each year at fixed prices for the initial term with a portion of
supply in later years subject to reduction within a price band in the event
that prevailing spot market prices at that time are reduced. The agreement
also provides for an initial deposit to Nitol Solar upon signing and requires
that Suntech make additional prepayments for products subject to Nitol Solar's
successful achievement of certain facility development and production volume
milestones and other conditions.
"We are very pleased to sign this agreement with Nitol Solar and expect
that it will be the first phase of an expanding partnership with additional
allocation as their production capacity grows. This structure fits well with
our own plans to expand Suntech's production capacity on an annual basis,"
said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "Nitol Solar is one of
the most advanced new entrants in the polysilicon field given its long
standing chemical production expertise including large commercial scale
production of key gases required for polysilicon production such as
trichlorosilane and chlorine. We look forward to this long term relationship
with Nitol Solar and expect them to become one of our key long term supply
Dr. Shi continued, "This agreement also adds to our growing pipeline of
silicon at prices well below today's spot market and will help us to advance
towards our goal of driving the cost of solar to grid parity."
Nitol Solar operates a chemical factory in Irkutsk Region, Russia and has
over 70 years experience in the chemical industry. Nitol Solar is in the
process of building a plant with target production capacity of 3700 metric
tons of polysilicon in 2009. Nitol Solar already produces commercial
quantities of trichlorosilane gas, which is a key material used in the
production of polysilicon.
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said: "We are
delighted to announce this agreement with Suntech, a leading global PV
manufacturer. This agreement represents a significant portion of our
production and firmly establishes Nitol Solar as a future supplier of high
quality polysilicon in the global solar industry."
Nitol Solar is an international group manufacturing key chemical
components for the global Solar Energy industry from an established chemical
chlorine and silicon gas facility in Irkutsk Region, Russia. Nitol Solar's
current and envisaged product groups encompass a number of steps in the photo-
voltaic value chain from trichlorosilane gas through polycrystalline silicon
to the finished mono and multicrystalline wafers utilized in solar cells.
Nitol Solar's aim is to become a global leader in the efficient production
of polysilicon products for the fast-growing solar energy industry. Nitol's
production facility, 'Usoliekhimprom', is located in Usolie-Sibirskoe, Irkutsk.
It is compliant with international quality and safety standards and ranks
among the most environmentally transparent facilities in Russia.
For more detailed information please visit Nitol Solar's website at
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 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, North America, Japan and China. 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,
and includes the expectation that it will be the first phase of an expanding
partnership with additional allocation as Nitol Solar's production capacity
grows, and Suntech's ability to drive the cost of solar to grid-parity. 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:
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc.
SOURCE Suntech Power Holdings Co., Ltd.
/CONTACT: In China - Rory Macpherson, Investor Relations Manager of
Suntech Power Holdings Co., Ltd., +86-510-8531-8922, or firstname.lastname@example.org;
Or in the United States - Sanjay M. Hurry, Vice President of The Piacente
Group, Inc., +1-212-481-2050, or email@example.com /
/Web Site: http://www.suntech-power.com /
CO: Suntech Power Holdings Co., Ltd.; Nitol Solar Ltd.
ST: China, California
IN: CPR ENV OIL UTI CHM
SU: ASI LIC
-- CNTH027 --
1175 11/01/2007 08:00 EDT http://www.prnewswire.com