(Yicai Global) July 23 -- Solar battery giant Longi Green Energy Technology has signed standing purchase contracts for photovoltaic aluminum frames totaling CNY5.32 billion (USD774 million) with two suppliers to ensure a raw material supply for its solar battery component production, it said in a statement yesterday.
Shares [SHA:601012]of the Xi'an-based company closed 3.57 percent higher in the morning session on the news and rose by 3.74 percent to CNY24.99 (USD3.62) by mid-afternoon.
Jiangsu Akcome Science & Technology, one of the two suppliers, confirmed the news in a separate statement the same day. Shares [SHE:002610] of the Zhangjiagang, Jiangsu province-based company also climbed 3.45 percent in the morning session to CNY1.80 (USD0.26 cents).
Akcome Science & Technology and Longi Green Energy Technology's various subsidiaries across China will separately fulfill and receive the order, which projects a total CNY2.6 billion (USD378 million) based on the current market price, and delivery of 47 million sets between the contract signing date and the last day of 2021, per the statement.
Another firm, the un-listed firm Liaoning province-based Yingkou Changtai Aluminum, secured an order of 50 million sets of photovoltaic aluminum frame, in a total amount of CNY2.73 billion.
Longi Green Energy Technology, the world's largest monocrystalline silicon maker, is actively expanding into the downstream solar battery component market.
It inked a two-and-a-half year standing supply deal with photovoltaic glass manufacturer Irico Group New Energy Company in early July to buy 68.5 million square meters of pv glass worth CNY1.8 billion.
Editor: Ben Armour