Yingli, Wacker in polysilicon supply deal

China's Yingli Green Energy (NYSE: YGE) said today that it signed an agreement for Germany's Wacker Chemie to supply polysilicon from 2009 to 2011.

The photovoltaic product manufacturer said it will be getting enough polysilicon to produce over 80 megawatts of photovoltaic modules over the life of the contract.

"This fourth supply agreement, together with our three existing long-term supply agreements with Wacker, further exemplifies the solid partnership that we have had with Wacker AG since 2003," said Liansheng Miao, chairman and CEO of Yingli.

"We believe this additional agreement will further enable our ability to complete the next 200 MW capacity expansion plan on schedule."

Yingli said it plans to expand its annual production capacity of polysilicon ingots and wafers, photovoltaic cells and photovoltaic modules to 400 MW by the end of 2008 and to 600 megawatts by 2010.

"As a market leader in an area facing rapidly growing demand, we are glad to strengthen and diversify our relationship with Yingli Green Energy," said Reimund Huber, director of marketing and sales at Wacker.

"We believe this agreement will benefit both partners and it coincides with our previously announced strategy of reaching a total capacity of 21,500 metric tons by the end of 2010."

Earlier this year, Yingli announced a contract to supply 9.55 MW of its photovoltaic modules to Spanish integrator Control y Montajes Industriales (see Yingli announces contract for 10% of its production).

Control y Montajes Industriales builds power plants, including solar and wind installations.

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