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August 25, 2008
Changzhou,
China: Trina Solar Expands Polysilicon Purchase Contract with
GCL Silicon
Trina
Solar today announced that its subsidiary, Changzhou Trina Solar
Energy Co., Ltd., has signed a supplemental agreement to the long-term
polysilicon supply agreement with a subsidiary of GCL Silicon
Technology.
Together
with the original supply agreement announced in April of this
year, GCL Silicon Technology will supply Trina Solar with virgin
polysilicon and wafers sufficient to produce approximately 4,825
MW of solar modules in aggregate over eight years. Delivery of
polysilicon at predetermined prices started in April of 2008.
''This
supplemental agreement greatly extends our advantage in securing
high quality polysilicon feedstock at predetermined prices to
support our long-term sales growth. Combined with our other long-term
agreements and increased manufacturing efficiencies, we remain
confident in our abilities to expand our margins in the long term
as the cost of solar energy approaches grid parity levels,'' said
Jifan Gao, Trina Solar's Chairman and Chief Executive Officer.
''Further,
the supplemental agreement's inclusion of significant wafer quantities,
starting in 2010, reflects a significant revision to our capacity
expansion strategy, whereby future expansion will involve increased
cell and module capacity additions relative to those for ingot
and wafer. We believe that this flexible strategy will offer increased
output of solar modules to achieve better market penetration under
our increasingly recognized brand. This will also allow us to
place our technology improvement emphasis on cell and module value
areas to further strengthen our brand. For 2009, we intend to
leverage on this dynamic strategy to efficiently extend our capacity
growth to approximately 700MW for cell and module areas, while
expanding ingot and wafer production capacities to approximately
500MW.''
''Trina
Solar is an important strategic customer and we are encouraged
by their progress made so far," said Hunter Jiang, CEO of GCL
Silicon Technology. "GCL Silicon Technology remains committed
to expand its production capacity to meet the growing demand from
customers such as Trina Solar."
This
supplemental supply agreement will further increase the Company's
raw material supplies and enhance its cost structure, and therefore
strengthen its position as a leading global PV manufacturer. After
signing this supplemental 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 204 MW based on a production target of 210 to
220 MW of module output. The Company has also secured sufficient
feedstock through its long term contracts to produce approximately
380 MW of solar modules in 2009.
Further details about: Trina
Solar Limited and GCL
Silicon Technology
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