Nanjing, China-based China Sunergy [1] (Nasdaq: CSUN [2]) said today it signed a contract to supply solar cells in 2008 to aleo solar [3], a German solar module manufacturer, but warned about supply for 2007.

Under the agreement, China Sunergy will supply at least 30 megawatts of silicon solar cells to aleo. Financial terms of the deal were not disclosed.

''One of my key objectives has been to enlarge and diversify our customer base and this new agreement is another important step in that direction," said Allen Wang, CEO of China Sunergy.

China Sunergy said it would supply 10 MW to aleo in the first half of 2008, with another 20 MW going out in the second half.

The company said aleo has an option for an additional 10 MW in 2008, and that the two have agreed to explore a longer-term business relationship extending into 2009.

"Even though this agreement and the recent wafer and polysilicon supply contracts are very positive developments as we look into 2008, I remain cautious about the outlook for the remainder of the year given the continued tight wafer supply and rise in wafer pricing that we have experienced so far in the second half of 2007," said Wang.