Wednesday, July 11, 2007

Yingli Green Energy Gets Solar Deal

Associated Press 07.10.07, 2:52 PM ET

German chemical company Wacker Chemie AG signed an eight-year supply deal with Yingli Green Energy Holding Co. to provide polysilicon, a material used to build solar cells, the Chinese manufacturer said Tuesday.

Financial terms of the deal were not disclosed.

The Munich, Germany-based company will deliver enough polysilicon to the Chinese solar cell manufacturer to produce 400 megawatts of solar cells starting 2010 through 2018. Solar power technology uses solar cells to convert light from the sun into electricity.

"This new long-term supply agreement, together with two existing long-term supply agreement with Wacker scheduled from 2009 through 2013 and 2017, will greatly support our Phase III expansion project," said Liansheng Miao, chairman and chief executive of Yingli Green Energy, in a statement.

As part of its Phase III project, Yingli Green Energy is seeking to grow all three of its major product lines by 400 megawatts each by 2008, and 600 megawatts each by 2010, a company spokesman said.

Shares of Yingli Green Energy fell 3 cents to $17.93 in midday trading.