(Yicai Global) Nov. 2 -- Hebang Biotechnology’s shares surged as much as 7.3 percent today after the Chinese chemicals manufacturer said its photovoltaic unit has obtained a long-term order for high-efficiency solar wafers estimated to be worth CNY19.5 billion (USD2.7 billion) from PV cell and panel maker Anhui Royal Green Energy Technology.

Hebang’s stock price [SHA:603077] was trading up 5.3 percent at CNY3.14 (USD0.43) as of 1.40 p.m. China time today. Earlier in the day it hit CNY3.20.

Fuxing New Energy will supply Royal Green with 2.5 billion high-efficiency PV wafers from 2023 to 2027, Chengdu, southwestern Sichuan province-based Hebang said yesterday. Based on current market prices, the contract could be worth CNY19.5 billion.

Royal Green will buy at least 300 million wafers next year and a minimum of 550 million a year for the following four years, according to the deal. The transaction price for each month will be negotiated by the two parties the previous month.

Hebang, whose main product is pesticides, has been branching into the solar industry in recent years. In October last year, the firm said it will invest CNY3 billion (USD412 million) to build a solar wafer plant with an annual output of 10 gigawatts in eastern Anhui province. Fuxing New Energy is the unit in charge of the project, the first phase of which started trial production in June.

Royal Green’s parent company Royal Group is also a newcomer in the PV sector and mainly deals in dairy products. The group said in August that it plans to spent CNY10 billion (USD1.4 billion) to build a solar cell and panel factory with an annual capacity of 20GW. It will then set up PV power plants in its dairy pastures and at oil major PetroChina’s gas stations.

Editor: Kim Taylor