Tuesday, March 25, 2008

Suntech Signs Eight-Year Polysilicon Supply Agreement with DC Chemical

Suntech Becomes One of DC Chemical's Key Customers for Polysilicon
March 24, 2008: 08:00 AM EST

SAN FRANCISCO, March 24 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has signed a definitive eight-year polysilicon supply agreement with DC Chemical Co. Ltd., a leading multinational chemicals producer headquartered in Seoul, South Korea. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.

Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical's ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech's relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."

Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."