Shanghai, China-based JA Solar Holdings Co. Ltd. (JASO: 5.99 +0.18 +3.10%)has signed a deal to supply solar equipment to Solar-Fabrik AG, a leading solar energy company in Europe. The deal entails the supply of photovoltaic products capable of producing 70 megawatts of solar power.JA Solar has already begun shipments under the deal and expects to continue until the end of 2010.
The supply agreement further strengthens the strong partnership between the two companies that began in 2008. Both JA Solar and Solar-Fabrik are committed to working together for future growth.
Solar-Fabrik, a pioneer in the international photovoltaic industry, has a strong presence and great brand recognition in key solar markets such as Germany, Italy and France. Through this deal, JA Solar expects to improve its geographic presence and positioning within the global solar market.
Based in Germany, Solar-Fabrik manufactures its products in Freiburg and is certified according to DIN ISO 9001 and 14001. Currently, the company has a production capacity of 130 megawatts (MW) and employs 350 workers at its site in Freiburg, Germany.
JA Solar, a leading manufacturer of high-performance solar power products, sells its products to solar manufacturers worldwide. The company is one of the most cost-efficient solar producers with silicon wafer supply agreements in place to feed its production.
We believe the JA Solar- Solar Fabrik partnership should help both parties to boost their market share over a period of time. JA Solar supplies high-quality products that will fulfill Solar-Fabrik’s requirements; while Solar-Fabrik’s global presence is expected to bring synergies to JA Solar.
Going forward, JA Solar is expected to benefit from its ongoing expansion programs, subsidy program in China, improving operating efficiencies, rising margins and higher conversion efficiency. However, apprehensions over the tepid module demand in Europe, rising competition, financial stability of its customers and the company’s high research and development expenses may adversely affect performance over the near term.
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