CHINESE SOLAR WAFER PRODUCTION JOINT VENTURE

Evergreen Solar Announces Wafer Factory and Subcontractor Relationship in China

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Evergreen Solar, Inc., manufacturer of String Ribbon solar power products with its proprietary, low-cost silicon wafer technology, announces it has entered into a frame agreement with Jiawei Solar (Wuhan) Co. and the Wuhan Donghu New Technology Development Zone Management Committee. The parties expect to finalize the terms of the manufacturing relationship over the next 90 days, including obtaining project financing and other approvals and permits, and plan to begin production in the second quarter of 2010.

Under the Agreement Evergreen Solar will manufacture String Ribbon wafers using its state of the art Quad furnaces at a leased facility being built in Wuhan, China on Jiawei’s campus. Jiawei will process String Ribbon wafers into Evergreen Solar-branded panels on a subcontract basis. Evergreen Solar will reimburse Jiawei for its cell and panel conversion costs, plus subcontractor fee.

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Initial capacity is expected to be approximately 100MW and the parties intend to expand production capacity to approximately 500MW by 2012, the timing and extent of which will be determined in 2010.

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“We are thrilled about our new relationship with Jiawei and the support that we are receiving from the Wuhan Management Committee,” said Richard M. Feldt, Chairman, CEO and President. “The cost of our 100 MW wafer facility will be between $40 million and $50 million, and we will seek financing for about two thirds of that amount, reducing our portion of initial capital required to approximately $15 million to $20 million”.

Sourced and published by Henry Sapiecha 23rd June 2009

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