WUXI, China, Oct. 25 /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 $180 million
agreement with Renewable Energy Corporation ASA (Oslo Stock Exchange: REC),
the world's largest manufacturer of multicrystalline silicon wafers for solar
applications, to purchase silicon wafers over a 5-year period. Sumitomo
Corporation is acting as REC's commercial representative for the deal.
''This agreement with REC and Sumitomo, together with our other long-term
supply agreements, will enable Suntech to further reduce spot market purchases
of raw materials and improve our cost competitiveness in the future,'' said Dr.
Zhengrong Shi, Suntech's chairman and CEO. ''This agreement also enhances our
strategic relationships with the world leading silicon and wafer manufacturers.
Suntech will continue to pursue our goals to expand our market share and focus
on our ongoing initiatives to make production and technological improvements
to our cell and module products.''
The 5-year agreement is structured as a take-or-pay contract with a
pre-determined fixed price that decreases on an annual basis. This price
reduction curve will provide Suntech with wafers with an average cost
measurably below spot market prices. The delivery of wafers under the
contract is expected to begin in the first quarter of 2007.
''This is the fourth long term agreement on wafers that REC has entered
into since summer this year. Suntech, which is one of the fastest growing
solar cell and module companies in the world, will become a new valuable
strategic customer of REC, and this agreement further cements REC's position
as the leading manufacturer of multicrystalline silicon wafers and strengthens
our platform for further growth,'' said Erik Thorsen, President & CEO of REC.
REC is uniquely positioned in the solar energy industry as the only
company with a presence across the entire value chain. REC Silicon and REC
Wafer are the world's largest producers of solar grade silicon and wafers for
solar applications. REC Solar produces solar cells and solar modules.
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by both production output and capacity of solar cells and
modules. 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 majority-owned subsidiary, MSK Corporation is one of
Japan's largest PV manufacturers and one of the top-ranked companies in the
building-integrated photovoltaics (BIPV) space. Suntech's customers are
located in various markets worldwide, including key markets throughout Europe,
Japan, China and the United States. 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. Among other things, Suntech's expectations with
respect to the supply agreement with REC contain 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 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
For more information, please contact:
VP of Business Development
Suntech Power Holdings Co., Ltd.
Ogilvy Public Relations Worldwide
In the United States:
Senior Vice President
Ogilvy Public Relations Worldwide
SOURCE Suntech Power Holdings Co., Ltd.
/CONTACT: In China - Steven Chan, VP of Business Development of Suntech
Power Holdings Co., Ltd., +86-510-8531-8910, or firstname.lastname@example.org; Rory
Macpherson, Senior Associate of Ogilvy Public Relations Worldwide,
+86-10-8520-6553, or email@example.com, in the United States - Thomas
Smith, Senior Vice President of Ogilvy Public Relations Worldwide,
+1-212-880-5269, or firstname.lastname@example.org, both for STP/
/Web Site: http://www.suntech-power.com /
CO: Suntech Power Holdings Co., Ltd.; Renewable Energy Corporation ASA
IN: CPR ENV OIL UTI
SU: ASI LIC
-- CNW018 --
8413 10/25/2006 08:00 EDT http://www.prnewswire.com