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Friday, 02/29/2008 10:27:12 AM

Friday, February 29, 2008 10:27:12 AM

Post# of 173781
solf - this is old news but still helpful.
solf -Solarfun Secures Silicon Supplies
Solarfun Power Holdings (nyse: SOLF - news - people ) will receive $230 million worth of silicon wafers from a Korean conglomerate over a seven-year period starting this month. Solarfun did not give the name of its Korean partner.

The agreement also stipulates that the prices will be fixed, a key component to the contract as spot prices for polysilicon are much more expensive than fixed prices. As more capacity comes online to produce the costly solar and semiconductor component, analysts and the industry expect prices to ease.

Solarfun Chairman Lu Yonghua said that the contract will help the company meet its goal to manufacture products with 360 megawatts worth of generating capacity by mid-2008.

It also allows the company to "explore OEM as a possible addition to our business model," Yonghua said.

OEM, or original equipment manufacturing, is an agreement in which multiple companies partner to manufacture a product, but sell it under one brand.

link
http://www.forbes.com/2008/01/03/solarfun-energy-closer-markets-equity-cx_cg_0103markets35.html?partner=yahootix




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