Suntech Increases Total Silicon Secured in 2009 to Over 800MW
SAN FRANCISCO and WUXI, China, May 27 /Xinhua-PRNewswire/ -- Suntech
Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading
manufacturers of photovoltaic (PV) cells and modules, today announced that
it has acquired a minority stake in Shunda Holdings Co. Ltd, a manufacturer
of solar wafers based in China, from Actis, a leading private equity
investor in emerging markets, and Waichun Investment Fund, for a total
consideration of $98.9 million.
Suntech also announced that a definitive thirteen-year silicon wafer
supply agreement has been signed with a subsidiary of Shunda Holdings Co.
Ltd. Under the terms of the supply agreement, Shunda will supply Suntech
specified annual volumes of silicon wafers with a total volume of
approximately 7GW from 2008 to 2020.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "This strategic
investment and long term supply agreement will be instrumental in the
profitable and rapid growth of both Suntech and Shunda. This is another
example of how we can leverage funds raised through our recent convertible
notes offering to pursue strategic investments and high volume contracts
that strengthen the long term cost structure of our business model. We
believe that these transactions accelerate Suntech's path to grid parity
and significantly enhance Suntech's long term cost competitiveness through
better pricing and volume allocations. The multi-year commitment to
purchase silicon similarly provides Shunda with the security and visibility
to focus on expanding a world-class polysilicon plant."
Shunda produces silicon ingots and wafers and currently supplies a
number of major producers of PV crystalline cells and modules. Shunda is in
the final stages of building a world-class polysilicon plant in Yangzhou,
Jiangsu province, China with a first phase capacity of 1,500 metric tons.
Shunda intends to initiate production of solar grade polysilicon in the
third quarter of 2008. The polysilicon plant will utilize the advanced
Siemens production process, with a closed-loop recycling system, and employ
equipment and engineering services from industry leading vendors including
GT Solar Incorporated.
Dr. Shi remarked, "Located in our home province of Jiangsu, Shunda's
proximity to Suntech will enhance the synergies that we can achieve by
integrating polysilicon refinement right through to the manufacture of
premium quality solar modules. Shunda's clear commitment to maintaining the
highest environmental standards in the production of polysilicon was
another key factor considered in the lead up to this partnership. We look
forward to building a close and mutually supportive relationship with
Shunda."
Mr. Yunda Ni, Shunda's CEO said, "We are delighted to enter this
partnership with Suntech, a world leader in the solar industry. This long
term contract will provide a stable foundation for Shunda to expand our
polysilicon and wafer production facilities and help establish Shunda as a
premier manufacturer of both polysilicon and silicon wafers. Our
polysilicon plant is designed to employ proven technology and production
techniques in order to achieve the highest standards of clean
manufacturing. We look forward to making a growing contribution to the
development of the solar industry."
Commenting on Suntech's improved silicon outlook, Dr. Shi continued,
"The relatively small quantities of silicon wafers to be supplied in 2008
from Shunda will replace some of our higher-priced spot market silicon and
will make an important contribution towards the completion of our 2008
production target of 530MW. With this long-term agreement, we are able to
increase our silicon secured for 2009 by 50MW to 800MW of silicon with an
average cost more than 20% below our average cost of silicon in 2007."
About Actis
Actis is a leading private equity investor in emerging markets. To date
it has US$6.8bn of funds raised and significant investments in Africa,
China, India, Latin America, South and South East Asia. Actis has over 120
investment professionals on the ground in 14 offices worldwide and has been
investing exclusively in the emerging markets for 60 years.
About Shunda
Founded in 2003, Shunda has rapidly grown to become one of China's
leading producers of mono-crystalline silicon ingots and wafers. Shunda is
in the advanced stages of developing a world-class polysilicon plant in
Yangzhou, Jiangsu Province China with a first phase capacity of 1,500
metric tons.
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy
company as measured by both production output and capacity of solar cells
and modules. Suntech is passionate about improving the environment we live
in and dedicated to developing advanced solar solutions that enable
sustainable development. Suntech designs, develops, manufactures, and
markets a variety of high quality, cost effective and environmentally
friendly solar products for electric power applications in the residential,
commercial, industrial, and public utility sectors. Suntech offers one of
the broadest ranges of building integrated photovoltaic (BIPV) products
under the MSK Solar Design Line(TM). Suntech has sales offices worldwide
and is a market share leader in key global solar markets. For more
information, please visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute ''forward-looking'' statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as ''will,'' ''expects,''
''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,''
''estimates'' and similar statements, and includes Shunda's ability to
supply silicon wafers under the contract, and Suntech's ability to scale
production rapidly and cost-effectively in order to meet the demand for
solar products, and Suntech's ability to secure 800MW of silicon in 2009 at
prices 20% below the average cost of silicon in 2007. Such statements
involve certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements, including
but not limited to the performance of the parties under the agreement.
Further information regarding these and other risks is included in
Suntech's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F. Suntech does not undertake any
obligation to update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
For more information, please contact:
In China:
Rory Macpherson
Investor Relations
Tel: +86-510-8531-8922
Email: rory@suntech-power.com
In the United States:
Sanjay M. Hurry
Vice President
The Piacente Group, Inc. (Investor Relations Counsel, Suntech)
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com
SOURCE Suntech Power Holdings Co., Ltd.
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Related links:
http://www.suntech-power.com
CONTACT:
In China: Rory Macpherson, Investor
Relations, +86-510-8531- 8922, or rory@suntech-power.com; Or In
the United States: Sanjay M. Hurry, Vice President of The
Piacente Group, Inc. (Investor Relations Counsel, Suntech),
+1-212-481-2050, or suntech@tpg-ir.com
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