Hebei, China: JA Solar Revises Wafer Supply Agreement with M.Setek

From Solarbuzz June 11, 2007

Chinese solar cell manufacturer, JA Solar and M.SETEK, a privately-held Japanese company and one of the world's largest monocrystalline ingot and wafer manufacturers, have revised their supply agreement.

M.SETEK will supply larger quantities of wafers from July 2007, and the payment terms are also restructured from single payment to three installments. The original agreement was entered into in December 2006 and the revised agreement was entered into on June 5, 2007, about two weeks after the inauguration ceremony of M.SETEK's brand new polysilicon material plant in Soma, Japan.

The new agreement starts with 300,000 wafers per month being delivered in the period July 2007 to October 2007, rising in steps to 5,000,000 wafers per month by the July 2009 - December 2009 timeframe. The contract has a total value of $100 million.

"At the time of tight supply of feedstock of poly-silicon in solar industry, this agreement enables JA Solar to be in a more comfortable position," said Samuel Yang, JA Solar's Chief Executive Officer. "M. SETEK is a highly respected and reliable supplier of high quality monocrystalline wafers. We are delighted to have strengthened the partnership with M.SETEK in our supply chain. This long-term agreement, combined with other supply agreements previously negotiated with key partners, gives us confidence that JA Solar will be able to meet the expected demand levels we are seeing from customers, while maintaining our strict focus on profitability."