Moser Baer signs $800 mn sourcing deal with REC

New Delhi, July 27: Moser Baer India Ltd today said its subsidiary Moser Baer Photo Voltaic Ltd (MBPV) and the Norway-based REC Group have signed a contract for sale of silicon wafers by REC to MBPV valued at 800 million dollars over an eight-year period beginning from 2008.

''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,'' said MBPV CEO Ravi Khanna in a statement.

The REC contract is structured as a take-and-pay contract with a reducing price trend on an annual basis.

The delivery of wafers under the new contract is expected from 2008 and continuing over an eight-year period from the first shipment.

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 which plans to set up a capacity of 4,400 tonnes of solar grade silicon by the end of 2008.

''The three pronged strategy is part of our objectives to access a regular supply of high quality solar grade silicon at competitive pricing,'' said MBPV in the statement.

REC is the world's leading producer of silicon materials for photovoltaic (PV) applications and multicrystalline wafers, as well as a significant producer of cells and modules.

At 1137 hours, the Moser Baer stock is quoting Rs 311.50, up Rs 6.50 or 2.13 per cent.

UNI