Taiwan-based solar energy company DelSolar has secured a second long-term wafer supply contract with GCL Solar Energy Technology after listing its shares in an initial public offering last week on the Taiwan Stock Exchange.
The company said it expected the IPO to provide it with access to an enhanced and more diversified capital funding base, in addition to giving it a more prestigious global profile and reinforce its corporate governance platform.
DelSolar CEO and chairman RC Liang said, ‘This IPO shall lift the status of our DelSolar brand worldwide and assist in our constant search for an ideal cost of capital. It also represents a new beginning for our firm which is destined to become a global leader in the photovoltaic industry.’
Under the new agreement, GCL-Poly will provide to DelSolar high quality wafers that can meet the needs of about 664MW cells from this October to December 2015.
The company said the agreement includes a mechanism by which the parties may adjust prices to better reflect prevailing market conditions, and expects the alliance will ‘greatly enhance its overall operational needs and profitability’.
The new contract enhances a long-term relationship between the companies that was initiated with the first wafer supply contract this May.
Liang said, ‘In order to strengthen our strategic partnership with GCL-Poly and to secure the material needs for DelSolar’s future expansion, we have proactively discussed the second long-term supply contract with GCL-Poly.
‘This agreement will enhance DelSolar’s market position and strengthen the strategic partnership between both companies.’
DelSolar’s China-based facility WuChiang recently expanded its photovoltaic (PV) cell production capacity to 216MW currently.
DelSolar said it is currently executing a capacity expansion due to a robust trend in demand, upgrading the capacity at its Hsinchu-based facility by 120 per cent and initiating the construction of its Jhunan facility.
The company said it expects the Jhunan fabrication to enter its mass production stage in the second half of 2011 with an estimated PV cell production capacity of 3GW.
In addition, GCL-Poly owns a 20MW solar farm in Xuzhou, Jiangsu province, which it said is currently the largest solar farm in China.