SAN FRANCISCO, March 13 /Xinhua-PRNewswire/ -- Nitol Solar, an
independent polysilicon producer, and Suntech Power Holdings Co., Ltd.
(NYSE: STP), one of the world's leading manufacturers of photovoltaic (PV)
cells and modules, today announced that they have signed an agreement under
which Suntech will acquire newly issued ordinary shares comprising a
minority interest in Nitol Solar Ltd. for a total consideration of up to
$100 million, subject to the satisfaction of certain conditions.
Nitol Solar is an independent polysilicon producer which already has a
diversified customer base and current supply contracts with an aggregate
value of $1.5 billion through 2015. Suntech entered into a multi-year first
phase supply agreement with Nitol Solar in August 2007 for the supply of
committed monthly volumes of polysilicon to Suntech from 2009 to 2015.
Nitol Solar has over 70 years experience in the chemical industry and
is in the process of building a plant with a target production capacity of
3,700 metric tons of polysilicon in 2009, based in Siberia, Russia. The
Group already produces commercial quantities of trichlorosilane gas, which
is a key material used in the production of polysilicon. The investment
will enable Nitol Solar to continue development of the plant, which is
expected to be completed in 2009.
Dr. Zhengrong Shi, Suntech's Chairman and CEO, said: "Whilst there are
many entrants in the polysilicon industry, we feel Nitol Solar is
particularly well positioned due to its long heritage of chemical
production. We are delighted to be strengthening our relationship with
Nitol Solar at this important point in their development."
Dr. Shi continued, "Our strong financial base puts Suntech in an
excellent position to build strategic partnerships to secure increasing
quantities of high-quality polysilicon at prices that we believe will
accelerate our progress towards achieving grid parity. These partnerships
will also enable us to advance other initiatives to rapidly reduce the cost
of solar including the implementation of our high efficiency technology
into commercial production, capacity expansion and improvements in our
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "We are
very pleased that Suntech has come on board as a minority shareholder. They
are a high quality partner and well respected in the solar energy field. As
we move towards completing the new polysilicon production facility, Nitol
Solar is further set to enjoy a strong, independent future as a leading
supplier to the solar industry."
Commenting on Suntech's corporate philosophy, Dr. Shi said, "One of the
key principles of Suntech's corporate philosophy is a commitment to
environmentally responsible manufacturing and compliance with environmental
laws. We believe Nitol Solar has a similar commitment both in their current
operations and development plans. With this mutual commitment and a common
goal of producing grid parity solar products, we look forward to a healthy,
long-term partnership with Nitol Solar."
Dmitry Kotenko, Chief Executive Officer of Nitol Solar said, "Our new
polysilicon production facility will utilize advanced polysilicon
production equipment and the mature Siemens production and recycling
process to ensure the clean and safe manufacture of purified polysilicon.
We look forward to playing an important role in the manufacturing of clean,
renewable solar products."
Nitol Solar is an international Group manufacturing key chemical
components for the global Solar Energy industry from an established
chemical chlorine and silicon gas facility in the Irtutsk Region, Russia.
Nitol Solar's current and envisaged product groups encompass a number of
steps in the photovoltaic value chain from trichlorosilane gas through
polycrystalline wafers utilized in solar cells. Nitol Solar's aim is to
become a global leader in the efficient supply of products for the fast
growing solar energy industry. For more detailed information please visit
Nitol Solar's website at http://www.nitolsolar.com .
Suntech Power Holdings Co., Ltd. is a world leading solar energy
company as measured by both production output and capacity of solar cells
and modules. Suntech is passionate about improving the environment we live
in and dedicated to developing advanced solar solutions that enable
sustainable development. Suntech designs, develops, manufactures, and
markets a variety of high quality, cost effective and environmentally
friendly solar products for electric power applications in the residential,
commercial, industrial, and public utility sectors. Suntech offers one of
the broadest ranges of building integrated photovoltaic (BIPV) products
under the MSK brand. Suntech has sales offices worldwide and is a market
share leader in key global solar markets. For more information, please
visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes," "estimates" and
similar statements, and includes the satisfaction of conditions to the $100
million investment, Nitol's ability to complete the development of its
polysilicon plant, the ability of Nitol to deliver polysilicon supply under
its supply agreements, the ability to achieve grid parity, and future
compliance with environmental laws. Such statements involve certain risks
and uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. Further information regarding
these and other risks is included in Suntech's filings with the U.S.
Securities and Exchange Commission, including its annual report on Form
20-F. Suntech does not undertake any obligation to update any
forward-looking statement as a result of new information, future events or
otherwise, except as required under applicable law.
For further information please contact:
Nitol Solar Contacts:
Nitol Solar Limited
Tel: +7-495-741-700 x163
Patrick Handley and Anna Jones
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
In the United States:
Sanjay M. Hurry
The Piacente Group, Inc.
SOURCE Suntech Power Holdings Co., Ltd.