Bitterfeld-Wolfen, 10 December 2007 - Q-Cells AG has concluded a supply agreement for silicon wafers with the Chinese solar company LDK Solar Co., Ltd. The agreement is a ten year “take or pay” contract covering the period from 2009 to 2018. The total volume will enable Q-Cells to manufacture cells with an overall output of more than 6 gigawatt peak (GWp) additional to current expansion plans.
The agreement is based upon the conversion of silicon (43,000 tonnes) into wafers. Deliveries will start with 1,000 tonnes in 2009 and will rise to 5,000 tonnes p.a. by 2013. LDK shall supply the silicon from their current polysilicon plant being constructed or from volumes which will be covered by LDK’s other supply sources.
The pricing of the wafers has some fixed and market related elements for 2009 and 2010, and thereafter the fixed pricing element can be adjusted to market conditions. Furthermore, Q-Cells has the option to purchase 30% of LDK's additional silicon production if LDK expands its production capacity.
In addition, a processing option for the conversion of silicon supplied by Q-Cells has been incorporated into the agreement. Q-Cells shall make prepayments in the order of 10% of the silicon value to assist LDK with financing the expansion required to supply these volumes. This agreement which is based on US$ will allow Q-Cells to grow more rapidly from 2009 than previously planned.
With this substantial supply agreement the two companies deepen their long-time business relationship. „We appreciate LDK as a highly reliable partner“, said Anton Milner, CEO of Q-Cells AG, on the occasion of the signing of the contract. „The wafers delivered by LDK always meet our high quality standards. Thus we are particularly pleased to further strengthen our cooperation with this contract.“
By signing this contract Q-Cells AG confirms its ambitious growth plans. As soon as 2010 the company plans to produce more than 1 GWp of solar cells in its core business. The supply volumes secured with this new contract with LDK enable the company to once more accelerate the growth course from 2009 on.