Green Energy signs key supply contract

Green Energy Technology Inc (綠能科技), the nation's biggest solar wafer supplier, said yesterday it has signed two contracts worth a combined US$260 million with South Korea's DC Chemical Co Ltd to secure supply of a key material.

The contracts covers a nine-year period including this year and the time span between next year and 2016, Green Energy said in a statement released before the local stock market opened. Green Energy also makes solar cells for other companies.

The contract marked the latest in a series of agreements signed by local solar wafer and solar cell makers with the world's major polysilicon suppliers, in a bid to safeguard future growth by securing supply of the key raw material.

Early this month, Motech Industries Inc (茂迪), the nation's biggest solar cell maker, said it had signed two supply contracts with DC Chemical to supply polysilicon over the next eight years.

"Green Energy plans to seek more strategic partners and form a long-term cooperation in supply chain," Green Energy president Lin Hur-lon (林和龍) said in yesterday's statement.

Backed by the new supply contracts, Green Energy shares jumped 1.34 percent to NT$151 on the nation's main bourse.

Through the contract with DC Chemical, Green Energy has secured about 30 percent to 40 percent of the total polysilicon it needs to make solar cells for customers this year, it said.

Green Energy intends to double solar wafer output to 200 megawatt per annum and to start making solar cells in a new advanced 8.5 generation plant by the end of this year.