Indiantelevision.com's Digital Edge > Moser Baer signs $880 million sourcing deal with REC Group

Indiantelevision.com's Digital Edge

Moser Baer signs $880 million sourcing deal with REC Group

Indiantelevision.com Team

(27 July 2007 2:05 pm)

MUMBAI: Moser Baer Photo Voltaic Ltd (MBPV), a subsidiary of the Moser Baer India Ltd. and the Norway based REC Group, have signed a take-and-pay contract pegged at approximately $ 880 million.

The deal involves the sale and delivery of high quality multicrystalline silicon wafers by REC to MBPV over an eight-year period beginning from 2008.

MBPV CEO Ravi Khanna said, "We greatly value the technical, managerial and operation capabilities of REC and we believe that this strategic sourcing deal is a win-win situation for both sides. It will provide a long term customer for REC and an assured supply of high grade silicon, wafers to MBPV."

Globally, given the rapid growth of the photovoltaic industry, there is a shortage of silicon wafers, a key raw material for the photovoltaic industry. While the demand continues unabated, the supply is expected to remain tight in the near to medium term. An assured supply of silicon wafer will provide a significant competitive advantage to MBPV in the current industry scenario, states an official release.

The contract follows MBPV’s strategic sourcing initiative with Deutsche Solar and its acquisition of a 40 per cent strategic equity stake in the Slovenia-based Solarvalue Proizvodnja d.d. which plans to set up a capacity of 4,400 tonnes of solar grade silicon by end 2008.