Second Phase of Strategic Cooperation Between the Two Companies
SAN FRANCISCO, March 13 /Xinhua-PRNewswire/ -- Nitol Solar, an independent
polysilicon producer, and Suntech Power Holdings Co., Ltd. (NYSE: STP), one of
the world's leading manufacturers of photovoltaic (PV) cells and modules,
today announced that they have signed an agreement under which Suntech will
acquire newly issued ordinary shares comprising a minority interest in Nitol
Solar Ltd. for a total consideration of up to $100 million, subject to the
satisfaction of certain conditions.
Nitol Solar is an independent polysilicon producer which already has a
diversified customer base and current supply contracts with an aggregate value
of $1.5 billion through 2015. Suntech entered into a multi-year first phase
supply agreement with Nitol Solar in August 2007 for the supply of committed
monthly volumes of polysilicon to Suntech from 2009 to 2015.
Nitol Solar has over 70 years experience in the chemical industry and is
in the process of building a plant with a target production capacity of 3,700
metric tons of polysilicon in 2009, based in Siberia, Russia. The Group
already produces commercial quantities of trichlorosilane gas, which is a key
material used in the production of polysilicon. The investment will enable
Nitol Solar to continue development of the plant, which is expected to be
completed in 2009.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "Whilst there are
many entrants in the polysilicon industry, we feel Nitol Solar is particularly
well positioned due to its long heritage of chemical production. We are
delighted to be strengthening our relationship with Nitol Solar at this
important point in their development."
Dr. Shi continued, "Our strong financial base puts Suntech in an excellent
position to build strategic partnerships to secure increasing quantities of
high-quality polysilicon at prices that we believe will accelerate our
progress towards achieving grid parity. These partnerships will also enable us
to advance other initiatives to rapidly reduce the cost of solar including the
implementation of our high efficiency technology into commercial production,
capacity expansion and improvements in our operating efficiency."
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "We are very
pleased that Suntech has come on board as a minority shareholder. They are a
high quality partner and well respected in the solar energy field. As we move
towards completing the new polysilicon production facility, Nitol Solar is
further set to enjoy a strong, independent future as a leading supplier to the
Commenting on Suntech's corporate philosophy, Dr. Shi said, "One of the
key principles of Suntech's corporate philosophy is a commitment to
environmentally responsible manufacturing and compliance with environmental
laws. We believe Nitol Solar has a similar commitment both in their current
operations and development plans. With this mutual commitment and a common
goal of producing grid parity solar products, we look forward to a healthy,
long-term partnership with Nitol Solar."
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "Our new
polysilicon production facility will utilize advanced polysilicon production
equipment and the mature Siemens production and recycling process to ensure
the clean and safe manufacture of purified polysilicon. We look forward to
playing an important role in the manufacturing of clean, renewable solar
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 the Irtutsk Region, Russia. Nitol Solar's
current and envisaged product groups encompass a number of steps in the
photovoltaic value chain from trichlorosilane gas through polycrystalline
wafers utilized in solar cells. Nitol Solar's aim is to become a global leader
in the efficient supply of products for the fast growing solar energy industry.
For more detailed information please visit Nitol Solar's website at
Suntech Power Holdings Co., Ltd. is a world leading solar energy company
as measured by both production output and capacity of solar cells and modules.
Suntech is passionate about improving the environment we live in and dedicated
to developing advanced solar solutions that enable sustainable development.
Suntech designs, develops, manufactures, and markets a variety of high quality,
cost effective and environmentally friendly solar products for electric power
applications in the residential, commercial, industrial, and public utility
sectors. Suntech offers one of the broadest ranges of building integrated
photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices
worldwide and is a market share leader in key global solar markets. 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 satisfaction of conditions to the $100 million investment,
Nitol's ability to complete the development of its polysilicon plant, the
ability of Nitol to deliver polysilicon supply under its supply agreements,
the ability to achieve grid parity, and future compliance with environmental
laws. 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 further information please contact:
Nitol Solar Contacts:
Nitol Solar Limited
Tel: +7-495-741-700 x163
Patrick Handley and Anna Jones
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc.