WUXI, China, Dec. 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 that it has entered into an agreement with
Sunlight Group Inc. to purchase silicon wafers over a 5-year period. Sunlight
is headquartered in the U.S. with China and Japan-based production. The
contract provides for increased volumes over the course of the term at fixed
prices for each year with an annual price review for each calendar year.
Based on existing contract prices, the value of the silicon wafers to be
supplied is approximately $366 million to $670 million.
''We are very pleased to enter into this agreement with Sunlight and look
forward to a long term, strategic relationship with them. It is exciting to
be able to secure yet another meaningful contract for silicon which will
enable us to achieve our ambitious growth targets during a time of
industry-wide silicon supply shortages. As all of these long term silicon
supply contracts are priced measurably below spot market prices, we will see
immediate cost savings when they take effect in 2007. Supply agreements such
as these enable us to be among the fastest growing, lowest cost providers of
PV products in the industry,'' said Dr. Zhengrong Shi, Suntech's chairman and
This agreement with Sunlight combined with recent deals with suppliers
such as Comtec, MEMC and REC will enable Suntech to exceed its previous
expectation that 70% of its wafer supply needs for its projected 2007 PV cell
production output will be from fixed-price, multi-year contracts.
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
SOURCE Suntech Power Holdings Co., Ltd.
/CONTACT: 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 of Ogilvy Public Relations Worldwide, +86-10-
8520-6553, or email@example.com, for STP /
/Web Site: http://www.suntech-power.com /
CO: Suntech Power Holdings Co., Ltd.; Sunlight Group Inc.
ST: China, Japan
IN: CPR OIL UTI
-- CNM015 --
7093 12/18/2006 08:00 EST http://www.prnewswire.com