(Yicai Global) Aug. 2 -- Shares in Flat Glass Group set a new record in Shanghai today after China’s second biggest maker of photovoltaic glass said it will supply CNY4.6 billion (USD711.5 million) worth of products to Chinese solar module maker JA Solar Technology.

The price of Flat Glass' Shanghai-listed stock [SHA:601865] surged by the exchange-imposed limit of 10 percent to hit an all-time high of CNY47.14 (USD7.30). Its Hong Kong share price [HKG:6865] jumped 12.7 percent and was trading at HKD39.05 (USD5) as of 3 p.m. China time, just below its record of HKD39.87 set in January this year.

Flat Glass and three of its units will supply 230 million square meters of PV glass to Beijing-based JA Solar over the next three years, according to statements released by the two parties on July 30. While the actual price will be negotiated regularly, at today’s market price the deal is worth in the region of CNY4.6 billion.

The sales contract value is equivalent to 74 percent of the company’s revenue last year, Jiaxing, eastern Zhejiang province-based Flat Glass said.

The collaboration with Flat Glass will ensure the long-term stable supply of raw materials, said JA Solar. Its share price [SHE:002459] closed up 1.64 percent at CNY62 (USD9.60).

Flat Glass has been going from strength to strength in the last nine months on the back of growing demand for solar power generation. In January, the firm inked a deal with Risen Energy to supply 234 million sqm of PV glass and last December it penned a contract with Jinko Solar to provide it with 338 million sqm of PV glass.

Flat Glass will invest CNY4.35 billion (USD673 million) to build five industrial furnaces, each with a daily melting capacity of 12 million tons, in Chuzhou, eastern Anhui province to expand its production capacity and better meet growing demand for larger photovoltaic components, the firm said last December. Furnaces have cost advantages and can produce customized products more easily, it added.

Editor: Kim Taylor