Moser Baer Photovoltaics of India bags $880mn deal with Norway-based REC Group
New Delhi 28 Jul, 2007
http://economictimes.indiatimes.com/Corporate_Announcement/
Moser Baer Photo Voltaic (MBPV), a Moser Baer subsidiary, has entered into an eight-year, $880-million agreement with Norway-based REC Group for sourcing multi-crystalline silicon wafers. Silicon wafers go into manufacturing wafer-based solar cells. MBPV uses multiple technologies, including crystalline silicon, nano-technology and thin film, to make solar cells and modules. It has manufacturing facilities in an SEZ at Greater Noida.
Delivery of wafers under the agreement will start in 2008. “Globally, multicrystalline silicon wafers have a long lead time and supply is short of the rising demand. This contract would help MBVP get an assured supply from a reliable supplier,” said Moser Baer CFO Yogesh Mathur. The contract with REC Group is structured as a take-and-pay contract with pre-determined prices and volumes for the entire contract period.
MBVP would look at a combination of spot-buying, medium to long-term tie-ups and strategic investments to fulfil its silicon wafer needs. It has a strategic sourcing tie-up with Deutsche Solar and a 40% stake in Slovenia-based Solarvalue Proizvodnja d.d. that plans to set up a capacity of 4,400 tonnes of solar grade silicon by 2008-end.
The company recently announced the completion of the first phase of its 80 mw silicon crystalline project — 40 mw is currently up and running — and expects completion of second phase by the end of the current fiscal. “We are looking at expanding capacity from 80 mw by fiscal-end to about 250-300 mw in the next two years,” Mr Mathur said.
The company recently commenced commercial shipment of its solar photovoltaic cells and announced that it has customer orders and MoUs exceeding $100 million. The global photovoltaic market is expected to grow over six times to $40 billion by 2010.