Suntech Successfully Tests Initial Batches of Polysilicon
SAN FRANCISCO and WUXI, China, Aug. 18 /Xinhua-PRNewswire/ -- Suntech
Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading manufacturers
of photovoltaic (PV) cells and modules, today announced it has completed the
final round of its $100 million in aggregate purchase of a minority interest
in Nitol Solar, an independent polysilicon producer. In conjunction with the
completion of the transaction, Suntech also announced that it was pleased with
the test results from the initial batches of polysilicon that it has received
Suntech's completion of its minority investment in Nitol Solar coincides
with the recently announced $50 million equity investment in and $25 million
loan to Nitol Solar from IFC (International Finance Corporation), a member of
the World Bank Group. Funds raised from both Suntech and IFC will help Nitol
Solar to continue the on schedule construction of its new production
facilities in Irkutsk, Russia and achieve its projected annual polysilicon
capacity of 3,700 tons in 2009.
"We are pleased to cement our strategic partnership with Nitol and jointly
advance the adoption of solar energy as an instrument for sustainable global
change," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "This alliance
supports our diversified polysilicon procurement strategy to increase
visibility on supply while driving towards grid parity."
"The recent investment in Nitol Solar by IFC validates our view of Nitol
as one of the best-positioned new entrant polysilicon producers, both from a
technical perspective and now with the financial means to build out their
facility. We have already received sample quantities of polysilicon from Nitol
and are very pleased with the quality achieved," added Dr. Shi.
Lance Crist, Senior Manager IFC Oil, Gas and Chemicals, commented, "Our
investment in Nitol underscores IFC's commitment to supporting the growth of
renewable energy. Nitol's technical expertise in the production of key
polysilicon inputs and its strategic relationship with Suntech are important
reasons why we believe in the success of this project."
On April 1, 2008, Suntech announced an expansion to the terms of its
existing seven-year polysilicon supply agreement with Nitol Solar, which runs
from 2009 to 2015. Under the expanded agreement, Nitol had agreed to
substantially increase the aggregate committed volumes to be supplied between
2009 and 2015.
Dmitry Kotenko, Chief Executive Officer of Nitol Solar, said, "Suntech has
become a valuable partner of Nitol Solar and we are glad to acknowledge
success in our on-going relations with one of the leaders in the global solar
energy sector. Nitol Solar is committed to generating substantial value for
our strategic partners as we execute on our expansion plans and progress in
our mission to become cost efficient producers of quality polysilicon."
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
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized an
additional $3.9 billion through syndications and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services in
97 countries. For more information, visit http://www.ifc.org .
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 BIPV products under the
MSK Solar Design LineTM. Suntech has sales offices worldwide and is a market
share leader in key global solar markets. For more information, please visit
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 Nitol's ability to complete the development
of its polysilicon plant, the ability to complete such development without
further additional funding, the ability of Nitol to deliver polysilicon supply
under its supply agreements, the ability to achieve grid parity, and the
quality of polysilicon produced by Nitol. 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 about Suntech, please contact:
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc. (Investor Relations Counsel, Suntech)
For more information about Nitol, please contact: