(Yicai Global) Sept. 30 -- Shuangliang Eco-Energy Systems has placed orders for CNY65.7 billion (USD9.3 billion) worth of polysilicon raw materials in order to ensure supply as the Chinese solar wafer maker’s new production lines near completion and orders roll in.

Shuangliang’s subsidiary in the Inner Mongolia Autonomous Region will buy 150,000 tons of polysilicon from Xinte Energy and its three subsidiaries, the company said yesterday, citing the agreement signed between the parties. The deal, which will run from 2023 to 2030, is worth CNY45.5 billion (USD6.3 billion) based on the current market price of CNY303,000 (USD42,572) per ton.

Another unit Shuangliang Silicon Material Technology in eastern Jiangsu province is also purchasing 66,800 tons of polysilicon from Shanghai Oriental Hope Energy Holdings from this year to 2026, the parent firm said in a separate statement the same day. The deal is worth CNY20.2 billion (USD2.8 billion).

The purchase price for each month will be determined by the two units and the suppliers from the second half of the previous month, the Jiangyin, Jiangsu province-based firm added.

Shuangliang needs to ensure it has enough raw materials in place as a mega factory in Baotou, Inner Mongolia is expected to reach full capacity by the end of the year, boosting its annual output to around 50 gigawatts.

And orders are pouring in. In the past year, Shuangliang has signed solar wafer sales deals worth CNY90 billion (USD12.6 billion) with 11 solar battery clients.

Wasting no time, Shuangliang has locked in 641,200 tons of supplies in four separate deals in the last three months worth almost CNY200 billion (USD28.2 billion). In July, Shuangliang Silicon Material Baotou agreed to purchase 201,900 tons of polysilicon from Hong Kong-based Xinte and its subsidiaries as well as 222,500 tons from silicon giant Tongwei and four of its units.

Xinte Energy’s share price [HKG:1799] gained 2.2 percent to finish the day at HKD16.68 (USD2.12) today while Shuangliang's share price [SHA:600481] closed down 3.6 percent at CNY15.55 (USD2).

Editor: Kim Taylor