Supply Deal Boosts China Sunergy

Shares climb on news of a deal to supply Germany's Asola with solar cells.
Author:
Publish date:

China Sunergy

(CSUN)

shares leapt more than 20% Friday after the solar-cell maker got another supply contract under its belt for next year.

The China-based company, which went public about seven months ago, inked an agreement to supply Germany's Asola Advanced and Automotive Solar System with solar cells capable of converting sunlight into 10.2 megawatts of electricity a year.

Sunergy has recently announced similar deals with two other solar-module makers within the past couple of months. As for the Asola deal, the contract period runs to 2008, but Sunergy says that the parties could possibly decide to continue the relationship through 2012.

Asola CEO Reinhard Wecker in fact commented that he views Sunergy as "a valuable partner for our 2008 expansion plans and beyond," adding that "we would like to double or even triple our purchase volumes from China Sunergy each year" as his company looks to expand its business to new markets.

China Sunergy shares were up $1.18, or 12.4%, at $10.73 in recent trading.