Norway-based REC Group has signed an eight-year agreement to supply high quality
multicrystalline silicon wafers to Moser Baer Photo Voltaic Ltd (MBPV), a subsidiary
of Moser Baer India Ltd. The value of the contract is Rs880 million.
REC contract is structured as a take-and-pay contract with a reducing price trend
on an annual basis. The delivery of wafers under will commence from 2008 for the
next eight years from the date of the first shipment.
contract would assure a regular supply of silicon wafers in the medium to long
term and would also ensure that MBPV benefits from any increased efficiencies
in the silicon wafer market in the future.
to Ravi Khanna, CEO, MBPV, "We greatly value the technical, managerial and
operation capabilities of REC and we believe that this strategic sourcing deal
is a win-win situation for both sides. It will provide a long-term customer for
REC and an assured supply of high grade silicon, wafers to MBPV."
contract follows MBPV''s strategic sourcing initiative with Deutsche Solar and
its acquisition of a 40-per cent strategic equity stake in the Slovenia-based
Solarvalue Proizvodnja d.d., which plans to set up a capacity of 4,400 tonnes
of solar grade silicon by end 2008. This three-pronged strategy to secure its
future supplies is part of MBPV''s objectives to ensure availability of regular
supplies of high quality solar grade silicon at competitive prices.
given the rapid growth of the photovoltaic industry, there is a shortage of silicon
wafers, a key raw material for the photovoltaic industry. While the demand continues
unabated, the supply is expected to remain tight in the near to medium term. An
assured supply of silicon wafer will provide a significant competitive advantage
to MBPV in the current industry scenario.
is straddling multiple future technologies as it believes in a customer-driven
approach in providing optimised products to installations across the world.
company says it is responding to the rapidly expanding solar PV market, where
worldwide demand far outstrips supply, as it moves towards technological leadership
and develops a sustainable competitive edge by investing in disruptive technologies.