Expansion of Strategic Partnership Between Nitol and Suntech
SAN FRANCISCO, April 1, 2008 /Xinhua-PRNewswire/ -- Suntech Power Holdings
Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of
photovoltaic (PV) cells and modules, and Nitol Solar Ltd., an independent
polysilicon producer, today announced an expansion to the terms of their
existing seven-year polysilicon supply agreement which runs from 2009 to 2015.
Under the expanded agreement, Nitol has agreed to substantially increase the
aggregate committed volumes to be supplied between 2009 and 2015.
Suntech recently announced a strategic investment whereby Suntech will
acquire newly issued ordinary shares comprising a minority interest in Nitol
Solar for a total consideration of up to $100 million, subject to the
satisfaction of certain conditions. Suntech has already paid the first $33
million installment of this investment to Nitol Solar. The proceeds from this
transaction will enable Nitol Solar to advance the development of its new
3,700 metric ton polysilicon plant based near Irkutsk, Russia which is
expected to be completed in 2009. The new facility will utilize advanced
polysilicon production equipment and the mature Siemens production technique
with advanced recycling process to ensure the clean and safe manufacture of
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: ''The expansion of
our supply relationship with Nitol Solar further improves our long term
silicon outlook and provides a robust base to rapidly grow our business. With
Suntech's financial strength from the recent capital raising and plans for
rapid capacity expansion, we will continue to build relationships with silicon
producers that increase our long term cost visibility. We believe that this
favorably priced silicon will accelerate our path to grid parity and we are
confident that this will drive enormous demand for solar power systems
regardless of the subsidy environment. We look forward to solar power
becoming an increasingly important part of the global energy mix and
meaningfully reducing carbon emissions and the dependence on fossil fuels.''
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said: ''Suntech is
a highly valued partner and our cornerstone customer, and we are pleased to
expand our role as one of their key suppliers. This is another important step
in our strategic relationship and we look forward to continuing to build our
collaboration. Now that we have a strong order backlog and a diverse customer
base, we are concentrating on ramping our first phase polysilicon plant and
initiating the production of high-quality polysilicon as soon as possible.''
About Nitol 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 product line. 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 the amended
supply agreement, 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
Patrick Handley and Anna Jones
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc.