Apr 2 2008
Trina Solar Limited, a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that the Company has signed a long-term polysilicon supply agreement with a subsidiary of GCL Silicon Technology Holdings Ltd.
Under this agreement, GCL Silicon Technology will supply Trina Solar with virgin polysilicon sufficient to produce approximately 2,600 MW of solar modules in aggregate over eight years. Delivery of polysilicon at predetermined prices will start in April of 2008.
''This agreement represents a key component of our strategy to secure sufficient feedstock to support our sales growth. Combined with our other long-term agreements, planned in-house polysilicon production, and integrated manufacturing cost efficiencies, we believe we are in a strong position to expand our margins in the long term as the cost of solar energy approaches grid parity," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "This eight-year agreement will provide Trina Solar with a large quantity of polysilicon at favorable terms with delivery scheduled to commence this month."
"We are pleased to become a polysilicon supplier to Trina Solar and look forward to developing a close relationship with them," said Hunter Jiang, President of GCL Silicon Technology. "GCL Silicon Technology intends to expand its polysilicon production capacity to meet the growing demands of customers like Trina Solar.''
This long-term polysilicon supply agreement will enhance the Company's raw material supplies and increase its cost structure visibility to strengthen its position as a leading global PV manufacturer. After signing this agreement and together with other polysilicon supply agreements, the Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 195 MW based on a production target of 200 to 210 MW of module output.