Motech Industries Inc. has signed a five-year, NT$10 billion (US$312.5 million at US$1:NT$32) pact to secure adequate supplies of polysilicon wafers for its solar cells with Renewable Energy Corp. (REC) of Europe, according to company sources.
This deal came shortly after the Taiwanese solar-cell maker closed a similar deal with Chinese polysilicon-wafer supplier ReneSola Co., Ltd.
Motech had disclosed that it would likely sign the contract with REC since early last month, when its planned to cooperate with MEMC Electronic Materials Inc. of the U.S. broke up.
Motech's executives pointed out that the deal with REC would secure sufficient supply of materials for its solar cells. The company plans to increase output to 200 megawatts of cells by the end of this year and 240 megawatts sometime next year. They noted that the volume their company has secured with REC was far less than the volume MEMC could offer, but the REC's offer would help maintain their company's gross profit margin at over 30 percent.
According to Taiwanese industry insiders, REC will supply Motech with sufficient polysilicon wafers for making cells that can generate 25 megawatts of electricity power a year while ReneSola will supply it the wafers for making roughly same amount of the cells a year for three consecutive years. If the Taiwanese company's plan to buy the materials from MEMC had not failed, it would have secured the wafers for making 100 megawatts of cells a year.
Motech's executives stressed that the company's deal with REC was a pure material-procurement deal, containing no share-holding term. The solar-cell maker has raised NT$3.4 billion (US$106 million) in a syndicate loan for expansion.
REC is currently the world's No. 3 supplier of polysilicon wafers with output of 5,800 metric tons a year and the world's No.1 supplier of the wafers for solar-energy application with an annual output volume available for making 280 megawatts of cells.
REC is expanding output capacity according to a plan to boost output of the wafers to 6,500 metric tons a year and the wafers specifically for solar-energy application to 580 megawatts a year. The company will begin to supply Motech the materials next year.
******"This deal came shortly after the Taiwanese solar-cell maker closed a similar deal with Chinese polysilicon-wafer supplier ReneSola Co., Ltd. "****
REC will supply Motech with sufficient polysilicon wafers for making cells that can generate 25 megawatts of electricity power a year while ***ReneSola will supply it the wafers for making roughly same amount of the cells a year for three consecutive years.*** If the Taiwanese company's plan to buy the materials from MEMC had not failed, it would have secured the wafers for making 100 megawatts of cells a year.
Fag packet calc tells me that similar deal with SOLA was worth US$187.5M i.e 3/5ths of the REC deal ??
Also they failed to secure more wafers from MEMC so will prolly be leaning on SOLA and REC to send some more their way instead ??
can't find a date for this article so dunno how old it is
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My apologies if all this has been posted before...decided not to go out clubbing tonight as I've always personally found that NYE is an anticlimax and ends up being a shitty night (fights, pulling mingers, costing arm and a leg for just about everything and waking up the next morning with a headache and a pocket full of credit card receipts etc etc) Found meself at a loose end so thought I'd do something useful for once instead of watching porn/playing pro evo
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