China Sunergy in silicon supply deal with Hitachi
Hartford, Conn, 23 October 2008
Source: Associated Press/Forbes.com
http://www.forbes.com/feeds/ap/2008/10/23/ap5598888.html
China Sunergy Co. Ltd., a solar cell manufacturer based in Nanjing, China, announced Thursday it signed an agreement for a supply of single crystal silicon ingot for the production of solar cells. Japan’s Hitachi (nyse: HIT – news – people ) High-Technologies Corp. and its affiliate agreed to supply 1,472 tons of silicon ingot through the end of 2011.
The pricing has been fixed for shipments this year, but China Sunergy and Hitachi High-Technologies will negotiate the price of silicon ingot within a predetermined pricing range every three months beginning next year.
Allen Wang, chief executive of China Sunergy, said the deal allows Sunergy to reduce its dependence on what he called a volatile spot market to obtain silicon material supplies. Shares of China Sunergy edged down 18 cents, or 4.3 percent, to $3.99 in afternoon trading.