Solar EnerTech Signs Sales Contract Worth $9.2 Million with a Shanghai company
Reports on 1st Board Meeting of Joint R&D Lab With Shanghai University
MENLO PARK, CA — January 31, 2007
source: Solar Enertech Corp / press release
http://www.solarenertech.com/News/release.asp?numb=218
Solar EnerTech Corp. (OTCBB: SOEN) (the Company) is pleased to announce it has signed a sales contract of solar modules with Fan Qie Trading Ltd. of Shanghai. The contract, for a variety of solar products, is slated for delivery over seven shipments throughout the year, and is worth a total of U.S. $9.2 million. Since the launch of test production at the close of 2006, the Company has been producing its solar cell and module products in moderate quantities as Management assesses and refines production protocols. The new sales contract requires three product categories, totaling 2 megawatts of output, and launches the company into a capacity-intensive production mode that will prove a vital step towards fine-tuning every aspect of the Company’s solar cell and module manufacturing capability.
Shanghai Fan Qie Trading Ltd. is a solar panel wholesaler as well as system integrator that delivers small and medium turnkey solar systems that are often contracted by government subsidized renewable energy projects. The current order will be shipped to Africa, where many Chinese-assisted energy projects have been initiated subsequent to the Forum on China-Africa Cooperation held in Beijing last year. The event hosted 54 African nations’ leaders and it is anticipated that more orders by African nations will create a new marketplace for the Company along with existing opportunities present in Europe and California.
It should be noted that solar energy has become a critical component of China’s domestic long-term energy strategy for rural development. Government-subsidized programs aim at improving the efficiency of renewable energy technology applications, lowering production costs, and enlarging the contribution of renewable energy to overall energy supply. In response to a stronger Chinese Yuan, Solar Enertech has developed strategies to reduce exchange-rate risk by allocating 20-25% of its future products to the Chinese domestic market.
In related news, the Company’s R&D projects for 2007 and 2008 have been determined and further defined at the first board meeting of Shanghai University-SOLARE Joint R&D Lab held last week. Also at the board meeting, President Wang Min of Shanghai University was elected Chairman of the Board, and Mr. Leo S. Young, CEO of Solar Enertech was elected Deputy Chair.
The Joint R&D Lab, inaugurated last December, has gained support from California governor Arnold Schwarzenegger, who wrote in a recent letter to the Joint R&D Lab, “In the past few years, California and China have made significant strides in the development and support of renewable energy technologies. These advancements are not only important for the health of our residents, but also for the well-being of the entire world. As your new lab delves into solar cell technology, I hope you know of the great respect I have for the work you are doing.”
About Solar EnerTech Corp. (OTCBB: SOEN)
Solar EnerTech is a photovoltaic (PV) solar energy cell manufacturing enterprise based in Shanghai, China where the Company is establishing a sophisticated 42,000-square foot manufacturing and research facility in Shanghai’s Jinqiao Modern Science and Technology Park. Solar EnerTech plans to invest in PV cell research to develop higher efficiency cells and put the results of that research to use immediately in its manufacturing processes.