(Yicai Global) July 4 -- Chinese photovoltaic materials supplier Irico Group New Energy recently won a standing supply order from China's photovoltaic equipment giant Longi Green Energy Technology to provide photovoltaic glass worth about CNY1.8 billion (USD262.0 million) by the end of 2021.
Shares of Irico New Energy [HKG:0438] closed up 7.81 percent at HKD0.69 (USD0.09 cents) while Longi [SHA:601012] wound up 1.19 percent down at CNY22.33 (USD3.25) after rising 12.50 percent and 0.55 percent, respectively, in the early session on the news after the two issued their separate statements yesterday announcing they had penned the agreement that same day.
Running from July 3 to Dec. 31, 2021, the contract for the provision of 68.5 million square meters of photovoltaic glass is worth about CNY1.8 billion based on the average market price at the end of last month, but the actual rate will be fixed on a monthly basis.
The move will secure it a stable supply of photovoltaic glass materials, Xi'an, Shaanxi province-based Longi said in its statement, while Hong- Kong-headquartered Irico New Energy said cooperating with the leading firm in the sector will lift the company's photovoltaic glass market share and entrench its industry position.
Longi, which touts itself as "the world's most valuable solar technology company" on its website, is still actively expanding output though it has already captured about 40 percent of the market and become the world's largest monocrystalline silicon maker. The Xi'an-based firm's annual output of solar battery components will reach 16 gigawatts and 30 GW next year and in 2021, respectively, according to a plan to expand capacity it recently unveiled.
Irico New Energy, which developed China's first color cathode ray tube and its pioneering liquid crystal display glass substrate, has realized the shift to new industries such as solar photovoltaic glass, photovoltaic power station and new electronic materials from the conventional color picture tube industry in recent years.
Founded in 2000, Longi makes and sells single crystal silicon products globally in the form of single crystal silicon rods, monocrystalline silicon, battery components, distributed power stations and ground power station products. Previously named Xi'an Longi Silicon Materials, it rechristened itself Longi Green Energy Technology in January 2017.
A unit of Irico Group, Irico New Energy formed in 2004. It researches, develops, produces and sells solar photovoltaic glasses, solar cells and modules and related products. It also makes luminous materials, and lithium battery anode materials, flat panel displays and photovoltaic glass quartz sand.
It further builds and runs solar power stations, explores mining resources, produces and sells inorganic nonmetallic materials and products and trades in solar modules and accessories. The firm changed its name to in January 2016 from Irico Group Electronics.
Editor: Ben Armour