Sunways cancels polysilicon and UMG-silicon supply deals


The rapidly changing supply and price dynamics of polysilicon has led to PV module manufacturer Sunways AG making a string of changes to previously announced polysilicon and UMG-silicon production partnerships.

In early February 2009, Sunways cancelled a wafer supply deal with Swiss Wafers that had only been signed in October 2008. This cancellation is a result of what appears to be better prices on offer from LDK Solar.

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Sunways has now announced the cancellation of a polysilicon production partnership with the Schmid Group, general contractor for a plant that was to be built in Saxony, Germany. Delays in this project were recently reported, according to a presentation made at the recent Photon conference and exhibition, which was held in Munich, Germany at the beginning of March 2009.

However, as Sunways noted in a press release:

“From today’s point of view, the production of high purity silicon as raw material for the manufacture of solar cells no longer is a strategically and economically reasonable option for Sunways. Sunways will, however, maintain the trusting relationship with the Schmid Group and observe the project’s further development.”

Due to falling polysilicon prices, Sunways has also terminated a development and potential supply deal with Solarvalue AG, which was initiated in late 2007 with the aim of producing UMG-silicon. Solarvalue was not able to supply this UMG material to Sunways within the allotted time, according to Sunways.

Sunways’s comment stated:

“No further obligations of any kind will arise to Sunways AG from the termination of these two projects. Against the background of the changed situation in the markets for raw materials, Sunways AG considers it reasonable at this stage to ensure the supply of raw materials through a combination of purchases in the spot market and long term supply contracts.”

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