(EnergyAsia, July 10, Thursday) — Solarfun Power, a vertically integrated manufacturer of silicon ingots and photovoltaic cells and modules in China, said it has signed a polysilicon agreement and, separately, has purchased the remaining 48% stake in Jiangsu Yangguang Solar.

The agreement states that GCL Silicon Technology will immediately begin supplying Solarfun with virgin polysilicon to produce approximately 1.2 gigawatts of solar modules over a total of eight years. Thes agreement provides further security for Solarfun’s polysilicon needs, reaching its target of 160 to 180 MW of module shipments this year.

Harold Hoskens, Solarfun’s CEO, said: “This agreement is an important addition to Solarfun’s existing supply arrangements for silicon-related materials. The agreement helps improve visibility of our long-term polysilicon supply and strengthens our ability to execute our vertical integration strategy. The new supply will help reduce our costs, improve our quality, and allow us to gain greater control over our future delivery schedule and better leverage our recent wire saw investment.”

Hunter Jiang, CEO of GCL Silicon Technology, said: “We are very happy to sign this contract with Solarfun. We already have a good relationship with them and we look forward to building on this in the coming years. We plan to continue to expand our production capacity in order to meet the growing demands of our customers.”

Separately, Linyang Solarfun also signed an agreement to acquire the remaining 48% equity interest in Jiangsu Yangguang Solar Technology Co Ltd from Nantong Linyang Electric Power Investment Co Ltd, Jiangsu Qitian Group Co Ltd and Jiangsu Guangyi Technology Co Ltd for a total sum of RMB355 million to be paid in instalments. (US$1=RMB6.86).

As Linyang Electric is 70% owned by Solarfun’s founding chairman Yonghua Lu, the transaction was separately approved by the company’s audit committee. Linyang Solarfun had previously acquired a 52% equity interest in Yangguang Solar Linyang Electric in August 2007. The latest agreement will allow Linyang Solarfun to acquire the remaining stake and take full control of the company.