China Sunergy Signs Supply Agreement With REC Wafer

China Sunergy, a solar cell manufacturer, has signed a supply agreement with the European wafer provider Renewable Energy Corporation Wafer for a supply of monocrystalline 156-millimeter wafers for the seven years from 2009 through 2015.

According to the company, the scheduled shipments are expected to begin in early 2009 and be completed at the end of 2015. Both amount and price are fixed according to the thickness of wafer and the year of shipment, with some flexibility on amounts within certain limits.

Total purchases of wafers by China Sunergy from Renewable Energy Corporation (REC) Wafer are expected to exceed $400 million over the life of the agreement.

China Sunergy believes that, by partnering with its new supplier, it is reducing its reliance on the spot market, and it believes that the cost savings involved will ease the pressure it has recently seen on its margins.