LONGi signs 2-year monocrystalline wafer supply deal worth US$1.5 billion
- The largest monocrystalline wafer producer, LONGi Green Energy Technology Co has signed a two-year wafer supply deal with Chinese solar cell producer, Jiangsu Runyang Yueda Photovoltaic Technology Co (Runergy) worth approximately US$1.5 billion (RMB 10.34 billion).
LONGi is to supply mono wafers totalling 3.82 million units under a flexible pricing agreement, which would have accounted for almost 50% of LONGi’s operating income in 2018.
The supply deal starts from January, 2020 through the end of 2022 and is based on the current average market price of P-type monocrystalline silicon wafers with 180um thickness. Wafer sizes were not disclosed.
Runergy was establish in 2013 and claims to have previously established mono-PERC solar cell manufacturing capacity of 5GW at two bases in Yancheng (2GW) and Kaihua (3GW) China with plans to have expanded capacity to 11GW by the end of 2019.
Runergy was said to have had an operating income of RMB 849,119,200 (US$123 million) in 2018, with a net profit of RMB 3,293.42 (US$477.0).
PV Tech recently reported that LONGi was planning to increase annual mono wafer capacity beyond 100GW as the industry transitions to mono wafers.