Suntech, Wacker Schott in silicon wafer supply deal

Wuxi, China-based Suntech Power Holdings (NYSE: STP) announced today that it signed an agreement to get 220 megawatts of silicon wafers from Jena, Germany's Wacker Schott Solar.

Suntech did not disclose the financial terms or the length of the long term supply contract.

"With the impressive reputations of Wacker Chemie AG and Schott AG, we have no doubt that Wacker Schott will become a reliable source of high quality silicon wafers for Suntech," said Zhengrong Shi, chairman and CEO of Suntech.

"We admire their efforts to rapidly develop commercial scale production of silicon wafers and look forward to being a long term customer."

Wacker Schott was formed in February 2007 as a joint venture of Wacker Chemie and Schott Solar.

Under the terms of the agreement, Suntech said Wacker Schott would supply specified annual volumes of silicon wafers over the course of the contract.

"We are continuously growing our production capacities. By doing so, we strongly benefit from the expertise of our joint-venture partners and from a secure supply of high quality polysilicon provided by Wacker," said Patrick Markschlager, managing director of Wacker Schott.

"Our focus is on supplying high quality solar wafers for first class PV systems with high cell efficiencies."

Wacker Schott said it plans to invest a total of €370 million at its sites in Jena and Alzenau, with total solar wafer production capacity set to reach about one gigawatt per year by 2012.

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