Wednesday, October 10, 2007

China Sunergy inks polysilicon supply agreement with Zhonggui


Jennifer Schonberger Oct 09, 2007 12:33pm EDT

Chinese solar cell manufacturer China Sunergy Co., Ltd. said today that Luoyang Zhonggui High-tech Co., Ltd., a leading Chinese polysilicon manufacturing company, will supply China Sunergy with approximately 106 metric tons (MT) of high-quality virgin solar-grade multicrystalline polysilicon for 2007 and 2008.

Under the agreement, a total of 60MT and 46MT of solar-grade multicrystalline polysilicon will be shipped to China Sunergy in 2007 and 2008, respectively. The contracted volumes will support approximately 13 megawatts of production for China Sunergy during the contractual term, which primarily covers the period of September 2007 to March 2008. Pricing is on a fixed basis for the duration of the agreement.

In addition to the supply contract, China Sunergy said it also took delivery of a printing machine made by solar equipment manufacturing company, Baccini S.P.A. The company said it hopes to produce approximately three megawatts of high efficiency selective emitter cells during the fourth quarter of 2007 using the new machine.

China Sunergy said the purchase of the machine is "a solid step towards large scale commercial production of high efficiency cells."

Shares of China Sunergy popped 18.64%, or $1.88, to $11.96 at 12:17 p.m. ET. Shares of China Sunergy have been trading in the range of $ 4.83 to $16.50 for the past 52 weeks.

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