Suntech Power Holdings Co., Ltd. has entered into a deal with South Korean firm DC Chemical Co. Ltd. for the supply of polysilicon. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.
Dr. Zhengrong Shi, Suntech’s Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical’s ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech’s relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."
Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."