Yingli to get polysilicon from DC Chemical

Baoding, China-based Yingli Green Energy Holding (NYSE: YGE) said today it signed two agreements to get polysilicon from Korea's DC Chemical.

Yingli, a photovoltaic product manufacturer, said the first contract covers the supply of $27 million worth of polysilicon from DC Chemical in 2008.

Under the second deal, DC Chemical will supply polysilicon with a total value of $188 million to Yingli from 2009 to 2013.

"One of our key strategies on the procurement side has been to establish long-term relationships with some of the most respected polysilicon suppliers around the world," said Liansheng Miao, chairman and CEO of Yingli.

"These two supply agreements demonstrate our ability to work with major suppliers in the industry and we believe our relationship with DC Chemical will help us further secure our polysilicon needs in the short and long term."

Earlier this month, Yingli announced that it trimmed the thickness of its solar wafers by 10 percent, cutting the amount of polysilicon needed and reducing the cost of production (see Yingli slims down its solar wafers).

Yingli currently has 200 megawatts of total annual production capacity in each of polysilicon ingots and wafers, photovoltaic cells and photovoltaic modules.

The company plans to expand its capacity to 400 MW by the end of 2008 and to 600 MW by the end of 2009.

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