First Solar extends deal with PV materials supplier 5N Plus

First Solar has extended its existing agreement with 5N Plus for the supply of high-purity cadmium telluride and cadmium sulfide materials used to manufacture the thin-film PV market leader's CdTe modules.

The deal will be extended one year, to July 31, 2012, and will apply to specialty chemicals produced at both 5N Plus' Montreal headquarters facility and its newly operational plant in Germany. Under the amended terms, the minimum prescribed amounts of CdTe ordered by First Solar will increase by 50% for most of the remaining duration of the agreements, according to the materials company.

5N Plus also said that the definition of "change of control," which permits First Solar to exercise a purchase option over 5N Plus' German assets in certain circumstances, is being materially amended, so that such a change will occur when a party acquires 50% or more of the issued and outstanding shares of 5N Plus.

With the commissioning of its 5N PV subsidiary's Eisenhuttenstadt factory in the state of Bradenburg at the end of July, the company has doubled its annual CdTe production capacity, from approximately 100 to 200 metric tons. In addition to the nearly $14.4 million (Canadian) invested on building and equipping the new German factory, it also spent more than $3 million (Canadian) on improving efficiencies, increasing throughput, and reducing costs in its Montreal plant.

5N Plus finished its most recent fiscal year, which ended May 31, on a profitable note. The Quebec firm saw its revenues rise some 41% to to nearly $31 million (Canadian) and its net income increase 117% to more than $7.7 million (Canadian). Order backlog at the end of the fourth quarter was $30.1 million (Canadian), up more than 77% from the same quarter in 2007.    

-- Tom Cheyney