JUSUNG Engineering Signed Supply Contract with the Biggest Chinese Power Generation Group in China for Solar Cell Equipment.
The Biggest Single Contract in the Company’s History.
JUSUNG Engineering (CEO: Chul-joo Hwang, 036930)—a company specializing in semiconductors, liquid crystal displays (LCDs) and solar cell equipment—announced that it has signed a new supply contract with the biggest Chinese power generation group to provide turn-key equipment for solar cells worth USD 138.82 million (about KRW 157 billion). As the biggest single contract in JUSUNG’s history, it specifies the thin film Si equipment and crystalline Si equipment and schedules their delivery for October 2010.
The counterparty of this contract is G Group, which plans to increase its investment up to 2GW of solar power supply by 2013, and JUSUNG anticipates signing additional contracts with the company in the future. Likewise, the Chinese government has announced in 2008 plans to encourage additional production of renewable energy, including solar power, so that the ratio of renewable energy reaches 10% (30GW) by the year 2020. By contracting with G group, a major manufacturer of solar cell equipment, JUSUNG can be able to improve its brand awareness in the worldwide renewable energy market.
JUSUNG won the current contract after competitive bidding with other equipment suppliers from the US and Europe. According to G Group, “JUSUNG can provide the world highest efficiency ratio and JUSUNG is the sole supplier in the world that can manufacture both thin-film equipment and crystalline equipment. We have chosen JUSUNG because its technically superior and cost-effective equipment will allow both companies to establish highly reliable cooperative partnership in the future.” JUSUNG’s equipment and TCO (Transparent Conductive Oxide) technology allows a higher energy conversion rate (7.56% for single junction and 10.2% for tandem junction) and lower manufacturing costs than those of competitors. Mr. Chul-joo Hwang, the CEO of JUSUNG Engineering, said; “now JUSUNG’s solar cells equipment have the highest efficiency and the lowest cost in various manufacturing methodologies.”
JUSUNG has also signed a ‘Turn-key’ supply contract for thin-film solar cell equipment with Kisco in 2007, as well as supply contracts with Jiangsuu Zongyi group in China and Greenland New Energy Company in 2008, followed by Hisun PV in 2009. In February 2010, the company also signed contracts with French and US customers for crystalline solar cell equipment. From JUSUNG’s total sales of KRW 170 billion in 2009, about 40% was generated from solar cell equipment.
In the future, the company expects to sign contracts for solar cell manufacturing equipment, such as BIPV (Building Integrated Photo Voltaic) with existing customer as well. JUSUNG also expects to receive more purchase orders for its LCDs and semiconductors sectors. In particular, the company expects more purchase orders for its GaN MOCVD, essential equipment for light emitting diode (LED) displays.