In one of the largest-ever signed single wafer supply agreements, GCL-Poly will supply approximately 4,400MW (4.4GW) of multicrystalline wafers to China Sunergy over the next six years. Under the terms of the long-term agreement, wafer shipments will commence this month for completion in December 2016 and include a price adjustment mechanism based on wafer market price. No further financial details were disclosed.
“This agreement will strengthen our supply chain and solidify our competitive cost position in the dynamic solar industry,” noted Stephen Zhifang Cai, CEO of China Sunergy. “We expect that the partnership will positively contribute to CSUN's rapid growth in the global solar industry.”
The massive wafer supply deal would seem to underline China Sunergy’s push to become a major PV manufacturer in the year to come. In its last (third quarter) financial results, the company only shipped approximately 87.8MW in that quarter.
However, China Sunergy had also acquired CEEG (Shanghai) Solar and CEEG (Nanjing) New Energy, which provided the company with a total annual module capacity increase of 480MW. In order to further reduce production costs and respond to industry demand, China Sunergy expected to reach 400MW of solar cell capacity by the end of 2010 and 680MW of module capacity by the end of first quarter of 2011.