China's JA Solar, Shunda in wafer supply deal

Hebei, China-based JA Solar Holdings (Nasdaq: JASO) announced today that it signed a long-term wafer supply agreement with JiangSu Shunda Semiconductor Develop.

Shunda Semiconductor, a unit of JiangSu Shunda Group based in Yangzhou, will supply $46.4 million worth of silicon wafers.

Shunda Group, a high-technology company focusing on the photovoltaic market, produces polysilicon, monocrystalline ingots, and wafers.

JA Solar said total deliveries under the agreement could reach 1.2 gigawatts under the 41-month contract.

The company also announced today that it revised the prepayment terms of its wafer supply contract with JingLong Group.

JA Solar said it made the full $39.8 million prepayment to JingLong on Aug. 31, which will be applied against shipments starting on Jan. 1, 2008.

"These contracts further strengthen our long-term wafer supply and will help enable us to meet the company's growth objectives as we work to satisfy ever-demanding market needs," said Samuel Yang, CEO of JA Solar.

JingLong, one of JA Solar's primary suppliers, has shipped a total of 30.9 million wafers to JA Solar in the past twelve months.

"We will continue to work with our entire supply chain to build key strategic relationships to ensure product quality, supply stability and the economics required for us to sustain target growth and profitability," said Yang.

In June, JA Solar signed a long-term deal with Japanese polysilicon supplier M. Setek for 10.2 million wafers (see JA Solar silicon deal swells stock).

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