Moser Baer Voltaic signs $880 mn deal

Optical disc manufacturer Moser Baer India informed the BSE that its subsidiary, Moser Baer Photo Voltaic (MBPV), has signed a definitive contract with the Norway-based REC Group worth $880 million to source multicrystalline silicon wafers over a eight-year period starting 2008.

The contract assures a regular supply of silicon wafers in the medium to long term and also ensures that MBPV benefits from any increased efficiencies in the silicon wafer market in the future.

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 the company's objectives to access a regular supply of high quality solar grade silicon at competitive pricing.

Ravi Khanna, CEO, MBPV, 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.