Locks in Long-Term Silicon Wafer Supply from MEMC
WUXI, China, July 26 /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 entered into a definitive
agreement with MEMC Electronic Materials, Inc. under which it will receive
solar wafers from MEMC over a 10-year period.
Under the agreement, Suntech will lock up a 10-year wafer supply from MEMC.
The total contract size is $5 billion to $6 billion over a 10-year period with
significant growth trajectory of annual supply over the years. A
pre-determined fixed price reduction curve will provide Suntech with
competitively priced wafers as Suntech increases its output to meet market
demand. As part of the agreement, Suntech will advance funds to MEMC in the
form of an interest-free loan or security deposit for expansion of MEMC's
manufacturing capacity. In addition, MEMC has received a warrant to purchase
an approximate 4.9% equity stake in Suntech.
''PV technology is a proven clean-energy solution that is playing an
increasingly important role in meeting the global challenge of ever-growing
energy demand,'' said Dr. Zhengrong Shi, Suntech's chairman and CEO. ''We
believe that wafer-based PV technology will continue to dominate the
burgeoning solar energy industry in the next decade. This agreement allows
Suntech to continue to maintain our products' cost competitiveness, expand our
market share, and focus on our core competency of developing high-quality and
low cost per watt PV cells and modules. We are pleased to announce this
agreement as it marks the formation of a close cooperation between our two
MEMC (NYSE: WFR) is a global leader in the manufacture and sale of wafers
and related intermediate products to the semiconductor and solar industries.
MEMC has been a pioneer in the design and development of wafer technologies
over the past four decades, with R&D and manufacturing facilities in the
United States, Europe and Asia.
About Suntech Power Holdings Ltd.
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by production output of solar cells in 2005. Suntech
provides solar solutions for a green future. Suntech designs, develops,
manufactures, and markets a variety of high quality, cost effective and
environmentally friendly PV cells and modules for electric power applications
in the residential, commercial, industrial, and public utility sectors.
Suntech's customers are located in various markets worldwide, including
Germany, Spain, China and the United States. For more information, please
visit http://www.suntech-power.com .
Safe Harbor Statement
This announcement contains forward-looking statements. These statements
are made under the ''safe harbor'' provisions of 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. Among others, statements regarding Suntech's beliefs and
expectations that the wafer supply agreement would secure between $5 billion
and $6 billion of solar wafers for Suntech over the 10-year period of the
agreement, the supply would begin in the first quarter of 2007, wafer-based PV
technology will continue to dominate the solar energy industry in the next
decade and the wafer supply agreement will allow Suntech to continue to
maintain its products' cost competitiveness, expand its market share and focus
on its core competency of developing PV cells and modules are forward-looking
statements. 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 annual report on Form 20-F filed with the U.S.
Securities and Exchange Commission. Suntech does not undertake any obligation
to update any forward-looking statement, except as required under applicable
For more information, please contact:
Suntech Power Holdings Ltd.
Ogilvy Public Relations Worldwide
In the United States:
Ogilvy Public Relations Worldwide
SOURCE Suntech Power Holdings Ltd.
/CONTACT: Cindy Shao of Suntech Power Holdings Ltd., +86-510-8534-5000,
or firstname.lastname@example.org; or Philip Lisio, +86-10-8520-6550, or mobile,
+86-135-0116-6560, or email@example.com, or Thomas Smith,
+1-212-880-5269, or firstname.lastname@example.org, both of Ogilvy Public Relations
Worldwide, for Suntech /
/Web Site: http://www.suntech-power.com /
CO: Suntech Power Holdings Ltd.; MEMC Electronic Materials, Inc.
IN: CPR OIL UTI SEM ECP
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0888 07/26/2006 08:00 EDT http://www.prnewswire.com