(STP) Suntech Power Holdings Company Gets New Supply Contracts

December 10th, 2009

Suntech Power Holdings Company Ltd. (STP) signed three long-term supply agreements to deliver 490MW of high performance solar modules over the next three years. Under the terms of the agreements, 115MW are planned for supply in 2010, 155MW in 2011 and 220MW in 2012, with the option to increase volumes.

Three of Suntech’s strategic long-term partners in Europe including a value-added reseller, an EPC (engineering, procurement and construction) company, and a project developer, signed the agreements to secure access to Suntech’s solar modules and develop closer collaboration on market information, shipment planning, and new product roll-outs.

The European expansion comes as a bonus to the leading Chinese manufacturer of crystalline silicon photovoltaic (PV) modules. Suntech has one of the broadest portfolios of BIPV products in the industry and a highly experienced system design and integration team that can implement complex turnkey solar projects.

Wuxi, China-based Suntech is a leading solar energy company in the world. The company designs, develops, manufactures and markets photovoltaic (PV) cells and modules. Looking forward, Suntech expects more than 10% spike in shipments in the fourth quarter over the third quarter of fiscal 2009. Gross margin in the fourth quarter of 2009 is expected to be relatively flat compared to the preceding quarter. Suntech has increased its full-year 2009 PV shipment target from 600MW to a range of 640MW?660MW. Capital expenditures are expected to be approximately $120 million for full year 2009.

For fiscal 2010, Suntech expects at least 75% shipment growth in 2010. The company targets to expand to 1.4GW of PV cell and module production capacity by the middle of 2010. Accordingly, Suntech expects capital expenditures to be approximately $200 million in 2010. We maintain our market Neutral recommendation on the shares.

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More on this topic (What's this?)
Suntech (STP) Snags 115 MW Deal With EnXco (Green Stocks Central, 11/4/09)
Suntech Power (STP) CEO: “Solar Now Competitive Energy Source” (Green Stocks Central, 1/25/12)
Suntech Goes Utility-Scale With Reliathon (Green Chip Stocks, 10/21/09)
Suntech and Solar Energy News (Clean Energy Sector, 10/21/09)
Read more on Suntech Power Holdings at Wikinvest

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