Canadian Solar signs deals for 700 MW of wafers

Jiangsu, China-based Canadian Solar (Nasdaq: CSIQ) said today it signed solar wafer supply contracts with four suppliers, including Jiangsu Shunda Group, for more than 700 megawatts of wafers.

The solar cell manufacturer did not name the other three suppliers or disclose financial terms of the agreements, but said the deals would provide the company with solar wafers over an eight-year period.

Canadian Solar said deliveries under the agreements has already started, with the suppliers expected to deliver 12 MW of wafers before the summer, including 4 MW from Shunda.

"These contracts allow us to immediately diversify our silicon wafer supply sources while giving us the option of securing additional wafers from Shunda through 2015," said Shawn Qu, CEO of Canadian Solar.

The company signed a multi-year supply contract with Shunda, which gives Canadian Solar the option of two fixed prepayments in late 2008 and 2010 for wafer supplies through 2015 at predetermined prices and schedules.

"We continue to execute our balanced supply portfolio strategy, a part of which aims to further strengthen and diversify our supplier base," said Qu.

Last October, the company signed a three-year, $533 million deal to get wafers from LDK Solar (NYSE: LDK), based in Xinyu, China (see LDK in $533M supply deal with Canadian Solar).

Founded in 2001, Canadian Solar is incorporated in Canada but conducts all of its manufacturing operations in China.

The company makes solar cells, solar modules and customer-designed solar application products.