Satcon, Great Wall Computer Announce Strategic Sales and Manufacturing Partnership to Expand Satcon's Leadership Position in China's Utility Scale Solar Market
Five-Year Agreement Provides Commercial Sales, Marketing and Distribution Relationship in Chinese Market, Extended Contract Manufacturing Agreement and Strengthened Supply Chain Organization
BOSTON--Satcon Technology Corporation® (NASDAQ CM: SATC), a leading provider of utility-scale power conversion solutions for the renewable energy market, today announced a partnership with Great Wall Computer Company Limited (GWPC), a majority-owned subsidiary of China Electronics Corporation (CEC). The partnership will position Satcon to capitalize on the estimated 14GW of utility scale projects under development, fueled by the country's Feed-In Tariff program. Of the 14GW of identified non-residential solar projects in development in China today, the majority are expected to be developed by China State Owned Entities.
"The Great Wall partnership significantly strengthens our company, accelerates our cost reduction efforts and opens up a sizeable opportunity above and beyond our recent success in the China market."
The partnership, which includes a five-year contract manufacturing agreement and a sales, marketing and distribution relationship, supports Satcon's strategic plan to continue to deliver its industry-leading utility scale inverter technologies at the industry's lowest possible cost though a world-class manufacturing and supply chain operation and localized access to the Chinese large scale solar market. GWPC is one the world's largest electronics contract manufacturers and is publicly traded on the China Stock Exchange (Code: 000066). CEC, a Fortune Global 500 company, is China's largest technology firm and one of 53 China State Owned Entities.
"As the worldwide solar market continues to develop, the focus on both inverter performance and costs have intensified," said Steve Rhoades, Chief Executive Officer of Satcon Technology Corporation. "The Great Wall partnership significantly strengthens our company, accelerates our cost reduction efforts and opens up a sizeable opportunity above and beyond our recent success in the China market."
"Great Wall is highly committed to the promise of solar PV as a source of clean renewable energy," said Mr. Zhou Gengshen, GWPC's CEO. "Satcon is the world's leading brand in utility-scale solar technologies and this agreement creates a strong, integrated global alliance that will deliver advanced technologies at a cost that makes solar a viable energy source now and for years to come."
Highlights of the Agreement:
A non-exclusive commercial sales and marketing agreement for the distribution of Satcon solar inverters for greater China. Under the terms of the sales and marketing agreement, Great Wall has committed to an initial purchase of approximately 60 megawatts of Satcon's PowerGate Plus solutions, which are expected to be delivered by April and utilized for Great Wall projects.
A non-exclusive contract manufacturing agreement with Great Wall's wholly-owned subsidiary and Satcon's current contract manufacturer, Excelstor. Under the new agreement, Great Wall will closely support joint efforts by Satcon and Excelstor in aggressive cost reduction driven by design and supply chain improvements. Under the terms of the agreement, immediate cost reductions are provided in addition to medium- and long-term targets.
"The Great Wall-Satcon partnership will enable continued solution innovation and cost competitiveness, helping to ensure the long term viability of solar as a key source of low cost clean energy production for decades to come," continued Rhoades.
Satcon Technology Corporation® is a leading provider of utility-scale power conversion solutions for the renewable energy market, enabling the industry's most advanced reliable and proven clean energy alternatives. For over 26 years, Satcon® has designed and delivered the next generation of efficient energy systems for solar photovoltaic, stationary fuel cells, and energy storage systems. To learn more about Satcon, please visit http://www.satcon.com.