China Sunergy, Yingli announce supply deals amid sector turmoil

Baoding, China-based Yingli Green Energy Holding (NYSE: YGE) and Nanjing, China-based China Sunergy (Nasdaq: CSUN) announced supply deals today as the solar sector continued to recover from yesterday's turmoil.

Solar companies across the globe saw share prices fall yesterday as Thalheim, Germany's Q-Cells (XETRA: QCE.DE), the leading solar cell maker, revised forecasts through the end of 2009 (see Bad news from Q-Cells spreads through solar supply chain). Q-Cells blamed the cancellation or delay of orders by nearly half its customers.

Yingli's shares were up 6.1 percent in afternoon trading, while China Sunergy's shares rose 10.6 percent.

Yingli said today it was maintaining its 2009 outlook, forecasting shipments of between 550 and 600 megawatts of solar cells and a gross margin of at least 24 percent. Yingli said the estimates took into account the expected polysilicon prices, lower prices for photovoltaic modules, and depreciation of the euro against the U.S. dollar (see Dollar's strength hurts SunPower).

Yingli expects to ship 270 to 280 MW of modules in 2008.

Also today, Yingli said it signed another deal with IBC Solar, this time supplying 91 MW of modules from now through December 2009 (see Yingli begins production of 200 MW expansion). The prices are fixed for this month but open for negotiation starting in January if the market prices fall below the contract's fixed price.

Meanwhile, China Sunergy said it signed a deal with Germany's Solarwatt AG to sell 22 MW of solar cells in 2009.

China Sunergy plans to provide monocrystalline solar cells at fixed prices starting in January.

Neither Yingli nor China Sunergy disclosed financial terms of the contracts.

Cleantech developments making news in the past 24 hours

• AES raises $1.58B with China Investment

View the last week of cleantech developments here | Subscribe to full feed