Saturday, May 31, 2008

Yingli Green Energy Signs Silicon Agreement with New Producer

Yingli Green Energy (NYSE: YGE) has signed a polysilicon supply contract with Sailing New Energy Resources Co., Ltd., located in Chongqing, China. Under the terms of the contract, Sailing will supply polysilicon to Yingli Green Energy from 4Q08 through the end of 2010.

The total amount of polysilicon to be supplied under this contract will allow Yingli Green Energy to produce a total of 160 megawatts (MW) to 200 MW of PV modules, subject to the production ramp-up schedule of Sailing and further negotiations between the two companies, according to a Yingli Green Energy release.

"We are very confident in Sailing's ability to produce high purity polysilicon with the proven refined Siemens method and their high quality production lines," commented Liansheng Miao, Chairman and CEO of Yingli Green Energy. "This contract will further increase our visibility on polysilicon supply from 2008 to 2010."

Earlier this week, Baoding Yingli Group Company Limited, which is owned by Miao and affiliated with Yingli Green Energy, announced it is considering a project to produce 3,000 metric tons of polysilicon annually.
Earlier this year, Yingli Green Energy cancelled plans to build its own polysilicon plant.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is a vertically integrated PV product manufacturer. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity.

Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 MW by the end of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, China and the United States.

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