Suntech inks $750M silicon agreement with DC Chemical

Wuxi, China-based Suntech Power Holdings (NYSE: STP) said today it has reached a deal with Seoul-based DC Chemical to supply it with polysilicon from 2010 to 2016.

Over the past few months, Suntech has been on a determined march to secure enough polysilicon to help avert potential shortages like those of the past few years.

Suntech said the deal helps the company make solar a viable alternative to fossil fuels.

The $750 million agreement comes seven months after Suntech signed an 8-year polysilicon supply agreement with DC Chemical at an estimated value of $631 million from 2009 to 2016 (see Suntech, DC Chemical in polysilicon supply contract).

Some six months ago, Suntech acquired a minority stake in China-based Shunda Holdings, a manufacturer of solar wafers based in China (see Suntech grabs stake in solar wafer maker Shunda).

Last month, Suntech closed a $100 million deal with Russia's Nitol Solar Ltd (see Suntech closes Nitol Solar investment). The large solar manufacturer completed the aggregate minority equity investment into polysilicon producer Nitol Solar in which Nitol will supply Suntech over a seven-year period beginning in 2009.

In recent days, DC Chemical has reportedly also inked polysilicon supply agreements with Swiss Wafers AG and GT Solar.

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