Yingli Green Energy Finds New Polysilicon Supplier

Filed in archive Stocks on July 14, 2007

Yingli Green Energy Holding Co. got a financial boost earlier this week when it was disclosed that they'd reached a deal with German chemical company Wacker Chemie AG under which Wacker Chemie will supply Yingle with polysilicon in the future.

Polysilicon is the raw material from which solar cells are made. A shortage of silicon has meant that many of China's solar power companies recycle the material out of sub-standard electronics or other sources. The Wacker Chemie deal will help Yingli ensure a supply of the material at least through the year 2018 and boost investor confidence in the solar company. Yingli's New York Stock Exchange IPO closed down when it was listed on June 8, partly because of investor fatigue in America over solar industry stocks.

This is the third supply agreement Yingli and Munich-based Wacker Chemie have signed. The new deal is for enough silicon to allow Yingli to manufacture 400 megawatts of solar cells. The deal goes into effect in 2010 and runs through 2018.

Yingli is also in the news this week over a deal to supply Control y Montages Industriales CYMI S.A, a Spanish firm, with solar cells later this year. Hats off to Dong Wang in Beijing for that information.