--Asia Silicon Successfully Initiates Production of High Purity PolysiliconSAN FRANCISCO and WUXI, China, Feb 17, 2009 /PRNewswire-Asia via COMTEX/ -- 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 recently
acquired a minority stake in Asia Silicon Co., Ltd. from an existing
shareholder for a total consideration of approximately $8.1 million.
''We are very pleased to cement our relationship with Asia Silicon,'' said
Dr. Zhengrong Shi, Suntech's Chairman and CEO. ''Asia Silicon has all the
makings of a world class polysilicon producer due to the utilization of the
most advanced production equipment, their expert technical team and industry
leading cost structure. By combining Asia Silicon's low-cost polysilicon with
Suntech's high conversion efficiency technology, we believe that we will be
able to achieve grid parity in many parts of the world within the next two or
three years.''
Suntech previously entered into an agreement to purchase high purity
polysilicon from Asia Silicon with a total value of up to $1.5 billion over a
seven-year period. The price of the silicon decreases to below $40 per
kilogram during the term of the contract.
Dr. Tihu Wang, Asia Silicon's CEO said, ''We are very excited to have
successfully initiated high purity polysilicon production and now welcome the
strengthening of our partnership with Suntech. The rapid construction and
startup of our close-loop facility is testament to the dedication and
expertise of our team of scientists, engineers and operations professionals.
Building on our industry leading cost structure and world-class technology, we
will continue to grow our polysilicon business with the continuing support of
the local government, the Chinese financial community and Suntech, and we are
well positioned to become a leading player in the polysilicon industry.''
Asia Silicon is in the ramp up stage of a state-of-the-art polysilicon
plant in Qinghai, China. Asia Silicon initiated production of high purity
polysilicon at the end of 2008 and targets to reach 2,000 metric tons of
annual production capacity by mid-2009. Tests on the initial products show
excellent quality that can meet both solar and electronic grade requirements.
The polysilicon plant utilizes the well-proven trichlorosilane-based advanced
Siemens production process with comprehensive recycling system and employs
equipment and engineering services from industry leading vendors. Up to 80% of
the electricity used at the facility will be supplied from renewable energy
hydropower sources with a pricing structure that is among the lowest
industrial electricity rates in China.
About Asia Silicon
Asia Silicon Co., Ltd. is an independent polysilicon producer based in
Qinghai, China. Asia Silicon employs the advanced Siemens process in its
state-of-the-art polysilicon plant. With its low cost structure and continuing
in-house technology development, Asia Silicon aims to be one of the world's
leading polysilicon producers that is environmentally conscientious and cost
competitive.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar
energy company as measured by production output of solar modules. Suntech
designs, develops, manufactures, and markets premium-quality, high-output,
cost-effective and environmentally friendly solar products for electric power
applications in the residential, commercial, industrial, and public utility
sectors. Suntech's patent-pending Pluto technology for crystalline silicon
solar cells improves power output by up to 12% compared to conventional
production methods.
Suntech also offers one of the broadest ranges of building-integrated
solar products under the MSK Solar Design Line(TM). Suntech designs and
delivers commercial and utility scale solar power systems through its wholly
owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and
will own and operate projects greater than 10 megawatts in the United States
through Gemini Solar Development Company, a joint venture with MMA Renewable
Ventures. With regional headquarters in China, Switzerland and the United
States and sales offices worldwide, Suntech is passionate about improving the
environment we live in and dedicated to developing advanced solar solutions
that enable sustainable development. 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 Asia Silicon's ability to ramp production capacity to 2,000
metric tons; Suntech's ability to achieve grid parity pricing in many parts of
the world within the next two or three years; and Asia Silicon's ability to
sell polysilicon at under $40 per kilogram. 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:
In China:
Rory Macpherson
Investor Relations Director
Tel: +86-21-6288-5574
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.
http://www.suntech-power.com/
