Trina Solar, Sichuan Yongxiang in polysilicon supply deal

Changzhou, China-based Trina Solar (NYSE: TSL) said today it signed an agreement to get polysilicon from Leshan, China's Sichuan Yongxiang Polysilicon.

Under the six year contract, Sichuan is expected to supply Trina with enough virgin polysilicon to produce 1,300 megawatts of modules.

Trina said deliveries are scheduled to start in mid-2008 and continue through 2013.

"This agreement with Sichuan Yongxiang Polysilicon represents an important step in the execution of our strategy to expand our fully integrated PV module manufacturing capacity," said Jifan Gao, Trina Solar's chairman and CEO.

"This six-year agreement ensures that Trina Solar will receive large quantities of polysilicon at favorable prices and payment conditions in a market of tight polysilicon supply."

Trina said Sichuan is in the advanced stages of building a 10,000 metric ton polysilicon production facility with an initial phase of 1,000 metric tons launching next year.

Dezhi Feng, general manager of Sichuan Yongxiang Polysilicon, said "Our affiliate company, a current manufacturer and supplier of trichlorosilane gas to well-established polysilicon producers in China, will supply Sichuan Yongxiang Polysilicon with trichlorosilane which is an essential raw material for the polysilicon production process."

"With this secure source of trichlorosilane, Sichuan Yongxiang Polysilicon is on target to start our test production in the first quarter of 2008."

Trina said with this contract and the company's existing supply agreements, it has now secured approximately 70 percent of polysilicon requirements for its 2008 planned production.

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