(Yicai Global) Oct. 18 -- Shares in Wuxi Shangji Automation advanced by as much as 1.7 percent today after the Chinese silicon wafer giant said it has landed standing orders from photovoltaic cell and panel maker DAS Solar and one of its units worth CNY9.4 billion (USD1.3 billion).

Shangji’s share price [SHA:603185] edged up 0.1 percent to trade at CNY141.33 (USD19) as of 1.30 p.m. China time today. Earlier in the day it hit CNY143.50.

DAS Solar and a subsidiary in Taizhou, eastern Jiangsu province will buy 825 million pieces of ordinary monocrystalline silicon wafers from two Shangji units, one in Baotou, northern Inner Mongolia Autonomous Region, and the other in Xuzhou, Jiangsu province, between January 2023 and December 2024, Shangji said yesterday, citing a contract signed by the four parties. The purchase amount is allowed to fluctuate by a maximum of 20 percent.

The Xuzhou unit will also provide 300 million pieces of N-type monocrystalline silicon wafers, used to make N-type solar cells with higher optical energy conversion efficiency, to DAS Solar and the Taizhou unit next year, Shangji said in a separate statement the same day, citing a different contract. Again, the procurement amount can vary by up to 20 percent.

The two orders are worth CNY9.4 billion based on the most recent market prices provided by solar market research firm PVInfoLink, at CNY6.2 billion for the ordinary monocrystalline silicon wafers and CNY3.2 billion for the N-type wafers.

Exact monthly orders will be determined by negotiations each month, Shangji said.

Shangji has been rapidly expanding capacity of monocrystalline silicon wafers, a key raw material used to make solar cells and an important source of profit for the Wuxi, Jiangsu province-based company. Its yearly output soared to 30 gigawatts at the end of last year from 12 GW at the beginning of 2021. Since then, orders have been rolling in.

DAS Solar, which is also quickly hiking its output, is making sure it has sufficient supply of raw materials. Last week, the Quzhou, southeastern Zhejiang province-based firm said it will buy 200 million square meters of PV glass from Luoyang Glass, a major solar glass supplier, over the next two years in a deal worth at least CNY4 billion (USD560 million) based on current market prices.

Editor: Kim Taylor