(Yicai Global) Aug. 10 -- A unit of China's Xinyi Solar Holdings has been awarded a long-term photovoltaic glass supply deal by a subsidiary of global solar power giant Longi Green Energy Technology.

Xinyi Solar Hong Kong's products will make up at least 35 percent of the solar glass that Longi Leye Photovoltaic Technology needs in the period of a bit more than three years till December 2024, the Xi'an-based buyer said in a statement yesterday.

The pair will confirm pricing on a monthly basis. From late next year, the contract may be updated with new terms in the fourth quarter of each year.

Shiny Sector

As more solar power plants are built around the world, Chinese solar power equipment makers have been looking to ensure raw material supply via long-term agreements.

Before the latest deal, Longi has penned two big contracts with PV glass suppliers early this year. The firm's subsidiaries will purchase 315 million square meters of the material from Flat Glass Group and its units by 2023. Moreover, Longi will buy at least 250 million sqm of PV glass from Deli Household Glass's unit between 2022 and 2026.

Longi and Xinyi are big names in the field. Leading global solar module producer Longi is expected to reach a 38-gigawatt solar cell capacity by December, and its solar module output should tally 65 GW, according to public data.

Wuhu-based Xinyi is the world's biggest PV glassmaker with a market share of about 35 percent. The company has three production bases across China in Wuhu, Tianjin, and Beihai, as well as one in Malaysia's Malacca. They can make 11,800 tons of PV glass every day.

Hong Kong-listed Xinyi's stock price [HKG: 0968] was 3.3 percent down at HKD16.76 (USD2.20) in the afternoon.

Longi's shares [SHA: 601012] fell 2.3 percent to CNY85.99 (USD13.30).

Editor: Emmi Laine, Xiao Yi