Suntech Increases Total Silicon Secured in 2009 to Over 800MW
SAN FRANCISCO and WUXI, China, May 27 /Xinhua-PRNewswire/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers of
photovoltaic (PV) cells and modules, today announced that it has acquired a
minority stake in Shunda Holdings Co. Ltd, a manufacturer of solar wafers
based in China, from Actis, a leading private equity investor in emerging
markets, and Waichun Investment Fund, for a total consideration of $98.9
million.
Suntech also announced that a definitive thirteen-year silicon wafer
supply agreement has been signed with a subsidiary of Shunda Holdings Co. Ltd.
Under the terms of the supply agreement, Shunda will supply Suntech specified
annual volumes of silicon wafers with a total volume of approximately 7GW from
2008 to 2020.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "This strategic
investment and long term supply agreement will be instrumental in the
profitable and rapid growth of both Suntech and Shunda. This is another
example of how we can leverage funds raised through our recent convertible
notes offering to pursue strategic investments and high volume contracts that
strengthen the long term cost structure of our business model. We believe
that these transactions accelerate Suntech's path to grid parity and
significantly enhance Suntech's long term cost competitiveness through better
pricing and volume allocations. The multi-year commitment to purchase silicon
similarly provides Shunda with the security and visibility to focus on
expanding a world-class polysilicon plant."
Shunda produces silicon ingots and wafers and currently supplies a number
of major producers of PV crystalline cells and modules. Shunda is in the
final stages of building a world-class polysilicon plant in Yangzhou, Jiangsu
province, China with a first phase capacity of 1,500 metric tons. Shunda
intends to initiate production of solar grade polysilicon in the third quarter
of 2008. The polysilicon plant will utilize the advanced Siemens production
process, with a closed-loop recycling system, and employ equipment and
engineering services from industry leading vendors including GT Solar
Incorporated.
Dr. Shi remarked, "Located in our home province of Jiangsu, Shunda's
proximity to Suntech will enhance the synergies that we can achieve by
integrating polysilicon refinement right through to the manufacture of premium
quality solar modules. Shunda's clear commitment to maintaining the highest
environmental standards in the production of polysilicon was another key
factor considered in the lead up to this partnership. We look forward to
building a close and mutually supportive relationship with Shunda."
Mr. Yunda Ni, Shunda's CEO said, "We are delighted to enter this
partnership with Suntech, a world leader in the solar industry. This long
term contract will provide a stable foundation for Shunda to expand our
polysilicon and wafer production facilities and help establish Shunda as a
premier manufacturer of both polysilicon and silicon wafers. Our polysilicon
plant is designed to employ proven technology and production techniques in
order to achieve the highest standards of clean manufacturing. We look
forward to making a growing contribution to the development of the solar
industry."
Commenting on Suntech's improved silicon outlook, Dr. Shi continued, "The
relatively small quantities of silicon wafers to be supplied in 2008 from
Shunda will replace some of our higher-priced spot market silicon and will
make an important contribution towards the completion of our 2008 production
target of 530MW. With this long-term agreement, we are able to increase our
silicon secured for 2009 by 50MW to 800MW of silicon with an average cost more
than 20% below our average cost of silicon in 2007."
About Actis
Actis is a leading private equity investor in emerging markets. To date it
has US$6.8bn of funds raised and significant investments in Africa, China,
India, Latin America, South and South East Asia. Actis has over 120
investment professionals on the ground in 14 offices worldwide and has been
investing exclusively in the emerging markets for 60 years.
About Shunda
Founded in 2003, Shunda has rapidly grown to become one of China's leading
producers of mono-crystalline silicon ingots and wafers. Shunda is in the
advanced stages of developing a world-class polysilicon plant in Yangzhou,
Jiangsu Province China with a first phase capacity of 1,500 metric tons.
About Suntech
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 Solar Design Line(TM). 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 Shunda's ability to supply
silicon wafers under the contract, and Suntech's ability to scale production
rapidly and cost-effectively in order to meet the demand for solar products,
and Suntech's ability to secure 800MW of silicon in 2009 at prices 20% below
the average cost of silicon in 2007. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements, including but not limited to the
performance of the parties under the agreement. 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:
In China:
Rory Macpherson
Investor Relations
Tel: +86-510-8531-8922
Email: rory@suntech-power.com
In the United States:
Sanjay M. Hurry
Vice President
The Piacente Group, Inc. (Investor Relations Counsel, Suntech)
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com
SOURCE Suntech Power Holdings Co., Ltd.
-0- 05/27/2008
/CONTACT: In China: Rory Macpherson, Investor Relations, +86-510-8531-
8922, or rory@suntech-power.com; Or In the United States: Sanjay M. Hurry,
Vice President of The Piacente Group, Inc. (Investor Relations Counsel,
Suntech), +1-212-481-2050, or suntech@tpg-ir.com /
/Web Site: http://www.suntech-power.com /
(STP)
CO: Suntech Power Holdings Co., Ltd.
ST: China
IN: CPR ENV OIL
SU: ASI TNM LIC
KY
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