Friday, November 2, 2007

Suntech Announces First Phase Polysilicon Supply Agreement with Nitol Solar

November 01, 2007: 08:00 AM EST

SAN FRANCISCO, Calif., Nov. 1 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced a first phase agreement with Nitol Solar Ltd. to supply polysilicon to Suntech over a seven-year period beginning in 2009.

The agreement provides for the delivery of predetermined volumes of polysilicon each year at fixed prices for the initial term with a portion of supply in later years subject to reduction within a price band in the event that prevailing spot market prices at that time are reduced. The agreement also provides for an initial deposit to Nitol Solar upon signing and requires that Suntech make additional prepayments for products subject to Nitol Solar's successful achievement of certain facility development and production volume milestones and other conditions.

"We are very pleased to sign this agreement with Nitol Solar and expect that it will be the first phase of an expanding partnership with additional allocation as their production capacity grows. This structure fits well with our own plans to expand Suntech's production capacity on an annual basis," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "Nitol Solar is one of the most advanced new entrants in the polysilicon field given its long standing chemical production expertise including large commercial scale production of key gases required for polysilicon production such as trichlorosilane and chlorine. We look forward to this long term relationship with Nitol Solar and expect them to become one of our key long term supply partners."
Dr. Shi continued, "This agreement also adds to our growing pipeline of silicon at prices well below today's spot market and will help us to advance towards our goal of driving the cost of solar to grid parity."

Nitol Solar operates a chemical factory in Irkutsk Region, Russia and has over 70 years experience in the chemical industry. Nitol Solar is in the process of building a plant with target production capacity of 3700 metric tons of polysilicon in 2009. Nitol Solar already produces commercial quantities of trichlorosilane gas, which is a key material used in the production of polysilicon.

Dmitry Kotenko, Chief Executive Officer of Nitol Solar said: "We are delighted to announce this agreement with Suntech, a leading global PV manufacturer. This agreement represents a significant portion of our production and firmly establishes Nitol Solar as a future supplier of high quality polysilicon in the global solar industry."

About Nitol

Nitol Solar is an international group manufacturing key chemical components for the global Solar Energy industry from an established chemical chlorine and silicon gas facility in Irkutsk Region, Russia. Nitol Solar's current and envisaged product groups encompass a number of steps in the photo- voltaic value chain from trichlorosilane gas through polycrystalline silicon to the finished mono and multicrystalline wafers utilized in solar cells.

Nitol Solar's aim is to become a global leader in the efficient production of polysilicon products for the fast-growing solar energy industry. Nitol's production facility, 'Usoliekhimprom', is located in Usolie-Sibirskoe, Irkutsk. It is compliant with international quality and safety standards and ranks among the most environmentally transparent facilities in Russia.
For more detailed information please visit Nitol Solar's website at http://www.nitolsolar.com .

About Suntech

Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .

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