(Yicai Global) April 4 -- Shuangliang Eco-Energy Systems, a Chinese manufacturer of solar wafers, has secured its fifth order for large-sized photovoltaic wafers in the last four weeks, bringing the value of deals signed over the period to CNY13 billion (USD1.9 billion).

Shuangliang Eco-Energy’s production base in Baotou, northern Inner Mongolia Autonomous Region, will supply Jiangsu Xinchao Photovoltaic Energy Development and one of its units with 720 million large-sized monocrystalline silicon wafers from now until the end of the year, the Jiangyin, eastern Jiangsu province-based company said yesterday.

The deal is expected to be worth CNY4.8 billion (USD697 million) based on the latest market prices compiled by solar market research firm InfoLink Consulting. Each month’s sales volume and pricing will be negotiated at the end of the previous month, it added.

The new contract replaces a previous agreement signed by the pair in December 2021 for CNY3 billion (USD448.5 million) worth of silicon rods to be delivered from 2022 to 2024, it said. To date, the two parties have conducted transactions worth CNY1.1 billion (USD160 million).

A comparison of the two contracts shows that Jiangsu Xinchao’s appetite for Shuangliang Eco-Energy’s PV products has grown so rapidly this year that a new deal had to be signed to meet the additional demand.

Shuangliang Eco-Energy's Baotou plant has secured long-term wafer supply deals worth more than CNY100 billion (USD14.5 billion) since it began mass production in the second half of 2021. 

The firm's output will rise to about 50 gigawatts a year by the end of June as new capacity come online, Securities Daily reported last month. The third phase of the Baotou plant with an annual capacity of 50 gigawatts will soon start construction.

Little moved by the news, Shuangliang Eco-Energy’s share price [SHA:600481] closed up 2.6 percent at CNY16 (USD2.30) today.

Editor: Kim Taylor