(Yicai Global) Feb. 9 -- Shares in Longi Green Energy Technology advanced today after the world’s largest monocrystalline wafer producer penned two procurement deals for photovoltaic glass and polycrystalline silicon worth as much as CNY18.1 billion (USD2.8 billion).

Longi Green’s stock [SHA:601012] closed up 4.64 percent at CNY117.41 (USD18.20) apiece.

The Xi’an, central Shaanxi province-based firm will buy 315 million square meters of large-size, thin-film PV glass from the Flat Glass Group over the next three years, according to statements by the two parties yesterday. The procurement amount for this year was set at 124 million sqm, a 30 percent increase from the amount estimated in a contract signed in 2019.

Flat Glass, the country’s second biggest maker of PV glass, put the value of the contract at CNY11.7 billion (USD1.8 billion), while Longi estimated it to be worth CNY10.4 billion.

Longi Green, which supplies over half of the world’s monocrystalline silicon chips, also penned a separate purchase agreement yesterday worth CNY6.4 billion (USD986 million) with Malaysia’s OCIM, owned by South Korea’s OCI, for 77,700 tons of polycrystalline silicon over a three-year period.

The demand for green energy has boosted orders at upstream suppliers for the solar industry. Solar panel makers are having to sign long-term supply contracts in order to secure enough raw materials.

This is Flat Glass’ third big supply deal in less than three months. It follows a CNY14.2 billion sales agreement signed with Jinko Solar Holdings at the end of last year and a CNY18.9 billion contract with Risen Energy in January.

To meet demand, the Jiaxing, eastern Zhejiang province-based firm said last December that it plans to spend CNY4.35 billion (USD674.4 million) to build five kilns in Chuzhou, eastern Anhui province, each able to process up to 1,200 panes of PV panes a day. Furnaces have cost advantages and can produce customized products more easily, it added.

Flat Glass’ Shanghai stock price [SHA:601865] closed up 8.85 percent at CNY36.90 (USD5.72) today while its Hong Kong shares [HKG:6865] gained 1.82 percent to finish at HKD33.60 (USD4.33).

Editor: Kim Taylor