Moser Baer in pact with China-based LDK Solar

Moser Baer Photo Voltaic (MBPV), a subsidiary of leading optical disc manufacturer Moser Baer, has entered into a multi-million-dollar agreement with China-based LDK Solar for sale and delivery of high-quality, multi-crystalline silicon wafers to MBPV.

The 10-year contract, which will commence in mid-2008, is a blend of take-or-pay and market-linked pricing mechanism. LDK Solar will deliver multicrystalline solar wafers to MBPV for producing PV cells that can generate 640 mw of solar power.

The partnership comes in the wake of a rising global shortage for silicon wafers "" a key raw material for PV cells. With the expanding growth in the solar energy space, the supply of silicon wafers falls short of the demand, said Moser Baer. This is Moser Baer's third deal in this space.

"We are pleased with the agreement with LDK Solar to secure quality solar wafers," said Ravi Khanna, chief executive office, Moser Baer Photo Voltaic. "We Look forward to a long-term, relationship with LDK Solar."

Last year, it signed a sourcing initiative with Deutsche Solar, which was followed by a definitive contract with the Norway-based REC Group worth $880 million to source multicrystalline silicon wafers. The Deutsche Solar deal is expected to get Moser Baer Photo Voltaic (MBPV) around $1 billion in revenues.