Nitol Solar and Suntech Announce Strategic Investment Second Phase of Strategic Cooperation Between the Two Companies



    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
 operating efficiency."
 
     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."
 
     About Nitol
 
     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 .
 
     About Suntech
 
     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: Alexander Goldin Nitol Solar Limited Tel: +7-495-741-700 x163 Patrick Handley and Anna Jones Brunswick Group Tel: +44-207-404-5959 Suntech Contacts: In China: Rory Macpherson Investor Relations Manager Suntech Power Holdings Co., Ltd. Tel: +86-510-8531-8922 Email: rory@suntech-power.com In the United States: Sanjay M. Hurry Vice President The Piacente Group, Inc. Tel: +1-212-481-2050 Email: suntech@tpg-ir.com

SOURCE Suntech Power Holdings Co., Ltd.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.