(Yicai Global) Dec. 7 -- Shares of Shuangliang Eco-Energy Systems soared after a subsidiary of the Chinese photovoltaic wafer manufacturer signed three long-term sales contracts worth an expected CNY12.1 billion (USD1.9 billion).

Shuangliang Eco-Energy’s stock price [SHA: 600481] ended 3.3 percent up at CNY10.86 (USD1.71), after soaring by as much as 9.3 percent earlier in the day.

Shuangliang Silicon Material Baotou will supply an affiliate of Canadian Solar with monocrystalline silicon ingots, its Jiangyin-based parent company said yesterday. It will also supply Jiangsu Xinchao Photovoltaic Energy Development and Changzhou Shunfeng Solar Technology with monocrystalline silicon rods and pieces.

The contracts begin next year and continue until 2024, Shuangliang said, noting that prices will be negotiated on a month-by-month basis. But based on data provider PV InfoLink’s latest pricing, they are worth about CNY12.1 billion, it said.

Shuangliang has secured a total of six clients for a new production base in Inner Mongolia Autonomous Region since September. The previous three contracts were worth CNY29.3 billion, based on the market prices when they were penned.

The CNY14 billion Inner Mongolia plant started construction last February. The first phase of the project, with a designed annual capacity of 20 gigawatts, began production on Sept. 30. The facility will increase the firm’s annual capacity of large-size silicon wafers by 40 GW by 2023.

Editor: Futura Costaglione, Xiao Yi