PVTIME – On March 21, LONGi announced that 8 of its subsidiaries and 4 subsidiaries of Tongwei Co., Ltd. signed a long-term Purchase Agreement for polysilicon materials.
According to the Agreement, the subsidiaries of Tongwei will provide 203,600 MT of polysilicon materials from January 2022 to December 2023. LONGi stated that this Purchase Agreement is in line with its future needs for silicon business. It is conductive to ensuring the long-term and stable supply of LONGi’s polysilicon raw materials and will not negatively influence it current performance through batch procurement with locking volume and monthly price negotiation.
The total value of the polysilicon materials in this Agreement is estimated to be about 44.2 billion yuan (Tax excluded), according to the average transaction price of high-purity monocrystal silicon material as 245,300 yuan /MT announced on March 16, 2022 by the Silicon Industry Branch of China Nonferrous Metals Industry Association. And that will accounts for 107.42% of LONGi’s audited operating costs in 2020 (notice that this calculation does not constitute a price commitment).
