Canadian Solar signs large supply contract with SolarWorld

Canadian Solar ("CSI") (NASDAQ: CSIQ) has signed a long term supply contract with Deutsche Solar, the wafer manufacturing subsidiary of SolarWorld Group of Germany.

Under the contract, Deutsche Solar will supply to CSI approximately 180 million Euro worth of Solsix-Multi 6" wafers over a 12 year period. Initial deliveries will start immediately, with full annual quantity deliveries to commence in January of 2009.

CSI and Solar World Group have worked together for the past two years, during which time CSI has also been providing recycled silicon feedstock for Deutsche Solar to turn into wafers.

Shawn Qu, Chairman and CEO of CSI, said, "Deutsche Solar AG is one of the biggest solar wafer companies in the world. Being able to secure the wafer supply contract at a price substantially lower than the current spot market price will help enhance our ability to grow and to provide affordable, quality solar products to customers worldwide."

Founded in 2001, Canadian Solar Inc. (CSI) is a solar module and related product company, serving customers located in various markets worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China.