(Yicai Global) Oct. 15 -- Shuangliang Eco-Energy Systems' stock shot up as much as 8.7 percent today after the Chinese photovoltaic wafer manufacturer said a unit has signed a sales contract worth CNY8.3 billion (USD1.3 billion).

Shuangliang Eco-Energy’s share price [SHA:600481] closed up 5.09 percent at CNY10.32 (USD1.60). Earlier in the day it had reached CNY10.68.

Shuangliang Silicon Material Baotou will supply solar cell producer Jiangsu Runergy Yueda PV Technology with 1.3 billion pieces of monocrystalline silicon wafers between 2022 and 2024, the Jiangyin, southeastern Jiangsu province-based parent firm said yesterday. Pricing will be negotiated on a month-by-month basis but based on current prices, the deal is worth around CNY8.3 billion.

Kunshan-based Runergy Yueda will buy 200 million pieces next year, Shuangliang Eco-Energy said. This will increase substantially in the following two years, to 500 million pieces in 2023 and 600 million in 2024, once Shuangliang Silicon’s giant new plant in the Inner Mongolia Autonomous Region starts production.

Phase one of the 40-gigawatt production base in Baotou should be ready by 2023. Costing CNY14 billion (USD2.2 billion), it will specialize in large-size monocrystalline silicon wafers. The transaction has secured a key client for the new plant before it is even finished.

Last month, Shuangliang Eco-Energy signed purchase contacts for 135,000 tons of polysilicon materials which will ensure the long-term, stable supply of raw materials to its Baotou production base.

Editor: Kim Taylor