Moser Baer Photo Voltaic in sourcing tie-up with China's LDK Solar

Moser Baer Photo Voltaic Ltd has entered in to 10-year agreement with the NYSE-listed LDK Solar, based in China, for sourcing high quality multicrystalline silicon wafers over a 10-year period commencing in mid-2008 from the first shipment through 2017. 

Under the terms of the  contract, which is a blend of "take or pay" linked with market-based pricing, LDK Solar  will deliver 640 MW of multicrystalline solar wafers, the essential raw material for making solar cells.

Under the terms of the agreement, LDK Solar will deliver multicrystalline solar wafers to MBPV for producing PV cells that can generate 640 MW of solar power. MBPV will make a suitable prepayment to LDK Solar reflecting the contract value. The ten-year contract is based on a blend of "take-or-pay" and market linked pricing mechanism.

LDK sells multicrystalline wafers globally to manufacturers of photovoltaic products, including solar cells and solar modules. It also provides wafer processing services to manufacturers of monocrystalline and multicrystalline solar cells and modules.

Globally, given the rapid growth of the photovoltaic industry, there is a shortage of silicon wafers, a key raw material for the photovoltaic industry. With the rising oil prices and the growing interest in alternate fuels due to global warming have led to rising demand for silicon wafers, its supply is expected to remain tight in the near to medium-term.

Accordingly, an assured supply of silicon wafers will provide a significant competitive advantage to Moser Baer Photo Voltaic Ltd.