SunPower Signs NorSun Ingot, Wafer and Polysilicon Agreements
San Jose, CA, Aug 15, 2007
Source: SunPower Corp. / press release
http://investors.sunpowercorp.com/releasedetail.cfm?ReleaseID=259824
SunPower Corporation (Nasdaq: SPWR), a Silicon Valley-based manufacturer of high-efficiency solar cells, solar panels and solar systems, today announced that it has signed two agreements with NorSun AS to support its solar cell manufacturing expansion plans.
Under the terms of the first agreement, SunPower will purchase sufficient silicon in ingot and potentially wafer form from NorSun to satisfy production requirements for up to approximately two gigawatts of solar cell production, based on SunPower’s expected silicon utilization during the agreement period and subject to contract conditions. Under the terms of the second agreement, NorSun will buy polysilicon from SunPower at fixed annual volumes and prices. NorSun will provide SunPower cash advance payments for the polysilicon under this agreement. Under both agreements, delivery begins in 2007 and continues through 2019.
“The NorSun agreements link our existing long-term polysilicon supply agreements and the expansion of our high-efficiency solar cell production at Fab 2 and Fab 3,” said PM Pai, chief operations officer at SunPower Corp. “By securing a large, long-term source of raw material, SunPower expects to achieve economies of scale that will contribute to our goal to reduce installed solar system costs by 50 percent by 2012. With this new agreement, NorSun, a strong new entrant into the solar market, will quickly scale its ingot and wafer manufacturing capacity in its new Ardal, Norway facility, diversifying our supply chain.”
“NorSun welcomes the opportunity to work closely with SunPower, a high-technology solar leader,” said Jon Hindar, NorSun’s CEO. “Through these agreements, NorSun establishes a strong relationship with a leading manufacturer of high-efficiency solar cells, which is well-suited to NorSun’s ambition to be a world-class supplier of ingots and high performance monocrystalline wafers.”