Conergy secures long-term supply of raw materials for Frankfurt (Oder) with a volume of US $7-8 billion

- US manufacturer MEMC supplies Conergy with components for solar modules with volume of US $7 to 8 billion
- Significant proportion of raw materials for Frankfurt (Oder) secured until 2018
- Solar electricity generated from Conergy modules may reach grid parity by 2014

Hamburg, St. Peters/Missouri – Hamburg-based Conergy AG, Europe’s largest solar systems provider, is cooperating with a strategic partner in the ongoing boom market for solar energy and has secured the long-term supply of wafers, a component of solar cells. The company reached agreement on Thursday with wafer manufacturer MEMC Electronic Materials, headquartered in Missouri USA, for the supply of wafers valued between US$ 7 and 8 billion up to 2018. With this the company secures an important share of its long-term raw material requirements for the fully integrated solar power plant in Frankfurt (Oder) and positions itself for continuing further growth. Conergy’s new factory has been producing the first solar modules since the summer, and will reach full production capacity of 250 MWp by the spring of 2008.

“This agreement is a quantum leap for us, since it eliminates one of the most significant uncertainties in our market – raw material supplies,” says Hans-Martin Rüter, Conergy CEO. “Soon, this agreement will enable us to satisfy high and still growing demand largely from own production, through our Epuron and SunTechnics brands. With the wafers from MEMC for our Frankfurt (Oder) plant we are creating the potential for higher margins. In addition, we will be able to expand further our leading position in the global market for photovoltaic systems.”

“With over 50 years experience in wafer manufacturing, we are certain that both companies are taking a decisive step forward. We are pleased with the agreement and look forward to working with an industry leader such as Conergy,” says Nabeel Gareeb, MEMC CEO.

In particular, the agreement specifies that MEMC will supply Conergy with wafers from July 2008. The volume of deliveries will increase every twelve months.
The agreed prices will decline steadily over the period of the agreement so that, in spite of the expected reduction in price for solar energy systems, Conergy will be able to achieve a normal manufacturer’s margin. Conergy will thus be able to significantly improve its international competitive position. There is also an incentive for both sides to benefit from improvements in efficiency. In line with industry practise, Conergy will make upfront payments to MEMC in 2008 for the amounts to be supplied under the agreement. At the start only multicrystalline wafers will be supplied. At a later date the Hamburg-based company has the option to also obtain single crystal wafers.

The procurement of wafers may imply a possible reduction of its own wafer saw capacity for Conergy. The additional profit the company loses through the reduction in added value for that part of the production process will be compensated by the competitive pricing agreed with MEMC. Conergy does not plan to withdraw completely from wafer sawing.

With this agreement Conergy has secured so far in total 40% of its raw materials requirements for 2008. Without further expansion stages, 80% of requirements are covered for 2009 and over 100% from 2010. Conergy has thus established the basis for future growth. Further supply contracts will have to be concluded for the remaining raw materials for 2008.

As a result of the agreement with the US manufacturer Conergy expects to be able to deliver systems, which will reach grid parity in South Germany as early as 2014. At that point, electricity from photovoltaic cells at just under 30 Eurocent/kWh will cost the same as electricity from conventional energy sources.


Hamburg, St. Peters / Missouri, 26 October 2007


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Conergy AG
Mr. Thorsten Vespermann
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Anckelmannsplatz 1
20537 Hamburg
Phone: +49 (0)40 27142 1631
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MEMC Electronic Materials, Inc
Bill Michalek
Director, Investor Relations
Telefon: +1 (0)636 474-5443

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