LONGi secures major 270,000MT polysilicon supply from Xinte Energy

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During the first half of 2020, Xinte realised a polysilicon production of 26,200 tons, representing an increase of approximately 43.96% over the corresponding period of last year, mainly attributable to the release of capacity of 36,000MT/year high-purity polysilicon industrial upgrade project. Image: Xinte Energy

Leading monocrystalline wafer producer, LONGi Green Energy (LONGi Group) has secured a minimum 270,000MT of polysilicon supply from Xinte Energy over a five-year period. 

Already a polysilicon supplier to LONGi Group, an existing supply deal, established in July 2018 has been cancelled. The original deal was for 91,080MT of polysilicon and was set to last between January 2019 to December 2021, averaging around 30,360MT per annum.

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The significantly larger deal that replaces the previous supply deal averages around 54,000MT per annum and is expected to be worth around US$2.94 billion in revenue to Xinte Energy, compared to around US$1.23 billion in the previous deal. 

The average transaction price of the new supply deal was said to RMB 80,500/MT, compared to RMB 88,100/MT in the previous deal. The average price of dense polysilicon used in monocrystalline wafer production had been RMB 66,200/MT in the first half of 2020, representing a 14.4% decline, year-on-year. 

Xinte Energy noted that the new deal would provide the stable sale of polysilicon and safeguard the daily operations of the company, as well as part of its business development strategy to further enhance its position in the new energy industry.

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