WUXI, China, Nov 15, 2006 /Xinhua-PRNewswire via COMTEX News Network/ -- 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 an agreement with
a China-based, US-owned leading manufacturer of silicon wafers to purchase
silicon wafers over a 5-year period. The contract provides for increased
volumes over the course of the term with an annual price review. Based on
existing contract prices, the value of the silicon wafers to be supplied is
approximately $475 million to $580 million.
''We believe that this agreement will further ensure Suntech's future
supply of silicon at prices that are measurably below spot market prices.
This will enable us to continue our delivery of solar products at the lowest
possible cost per watt to a growing number of international markets,'' said Dr.
Zhengrong Shi, Suntech's chairman and CEO.
Dr. Shi added, ''This long-term supply agreement again demonstrates
Suntech's ability to procure large quantities of silicon at favorable prices
in an environment of limited availability. We believe this will allow Suntech
to continue its rapid production growth while smaller players are increasingly
being left behind.''
The delivery of wafers under the contract is expected to begin in the
first quarter of 2007.
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
silicon supply agreement highlighted above 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.
In China - Steven Chan, VP of Business Development of Suntech Power Holdings Co.,
Ltd., +86-510-8531-8910, or firstname.lastname@example.org; or Rory Macpherson, Senior
Associate, Ogilvy Public Relations Worldwide, +86-10-8520-6553, or
email@example.com, or in the United States - Thomas Smith, Senior Vice
President, +1-212-880-5269, or firstname.lastname@example.org, both of Ogilvy Public
Relations Worldwide, for Suntech