Friday, May 01, 2009

Evergreen Solar Announces Wafer Factory and Subcontractor Relationship in China Jiawei Solar to Provide Cell and Panel Manufacturing Services

Evergreen Solar Announces Wafer Factory and Subcontractor Relationship in China Jiawei Solar to Provide Cell and Panel Manufacturing Services

MARLBORO, Mass. and WUHAN, China--May 1 2009 --Evergreen Solar, Inc. (NasdaqGM: ESLR), a manufacturer of String Ribbon™ solar power products with its proprietary, low-cost silicon wafer technology, today announced it has entered into a frame agreement with Jiawei Solar (Wuhan) Co. and the Wuhan Donghu New Technology Development Zone Management Committee which calls for a significant expansion of String Ribbon wafer manufacturing in Wuhan, China. The parties expect to finalize the terms of the manufacturing relationship over the next 90 days, including obtaining project financing and other approvals and permits, and plan to begin production in the second quarter of 2010.

Under the agreement,

Evergreen Solar will manufacture String Ribbon wafers using its state of the art Quad furnaces at a leased facility being built in Wuhan, China on Jiawei’s campus. Jiawei will process String Ribbon wafers into Evergreen Solar-branded panels on a subcontract basis. Evergreen Solar will reimburse Jiawei for its cell and panel conversion costs, plus subcontractor fee. The actual price paid to Jiawei will be negotiated annually. The Wuhan government will provide, or coordinate with other Chinese governmental agencies, various incentives, including guarantees necessary to obtain third-party bank or other financing. Initial capacity is expected to be approximately 100 MW and the parties intend to expand production capacity to approximately 500 MW by 2012, the timing and extent of which will be determined in 2010. The establishment of our wafer manufacturing facility and the subcontractor relationship with Jiawei remains subject to the satisfaction of certain conditions, including financing, various import/export and construction permits and the negotiation of definitive agreements between Evergreen Solar and Jiawei.

“We are thrilled about our new relationship with Jiawei and the support that we are receiving from the Wuhan Management Committee, said Richard M. Feldt, Chairman, CEO and President. The cost of our 100 MW wafer facility will be between $40 million and $50 million and we will seek financing for about two thirds of that amount, reducing our portion of initial capital required to approximately $15 million to $20 million.

“Combining our unique low-cost String Ribbon wafer manufacturing technology with Jiawei’s proven low cost manufacturing capabilities will result in a compelling value proposition for our customers and the solar industry. At full capacity of about 25 MW per quarter by the end of 2010, we expect that total manufacturing cost of String Ribbon panels produced in China, including Jiawei’s subcontractor fee, will be in the range of $1.40 per watt to $1.50 per watt. As the price of silicon returns to its historic level of about $50 per kilogram and as both companies work together to improve technologies and reduce manufacturing costs, we believe that total manufacturing cost could be reduced to approximately $1.00 per watt by the end of 2012,” Feldt concluded.

Conference Call Information

Management will conduct a conference call at 5:00 p.m. (ET) today to. The call will be webcast live over the Internet and can be accessed by logging on to the "Investors" section of Evergreen Solar's website, prior to the event.

The call also can be accessed by dialing (877) 704-5378 or (913) 312-1269 (International) prior to the start of the call. For those unable to join the live conference call, a replay will be available from 8:00 p.m. (ET) on April 30 through 8:00 p.m. (ET) on May 7. To access the replay, dial (888) 203-1112 or (719) 457-0820 and refer to confirmation code 5600248.

About Evergreen Solar, Inc.

Evergreen Solar, Inc. develops, manufactures and markets String Ribbon™ solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. For more information about the Company, please visit Evergreen Solar® and String Ribbon™ are trademarks of Evergreen Solar, Inc.

About Jiawei Solar (Wuhan) Co. Ltd., Inc.

Jiawei Solar (Wuhan) Co. Ltd., Inc is a subsidiary of Jiawei Solarchina Co., Ltd. Inc, a fully integrated manufacturer of solar products serving OEM and ODM customers around the world, including SunPower Corporation. Jiawei offers its global customers high performance solar products for a broad range of applications including residential and commercial end-users for off-grid and on- grid applications. The Company is dedicated to providing its world- class customer base with innovation, manufacturing excellence and superior product quality. For more information about Jiawei Solar, please visit .

Safe Harbor Statement

This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. These statements are based on management’s current expectations or beliefs. Such forward-looking statements include, but are not limited to, those related to expectations regarding the establishment of an Evergreen Solar wafer manufacturing facility in China, finalizing a contract manufacturing relationship with Jiawei Solar (Wuhan) Co., Evergreen Solar’s future manufacturing and product costs, the future capacity of Evergreen Solar’s China-based facilities, Governmental support and incentives and the future price of silicon. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, including risks associated with the company’s ability to successfully negotiate a definitive subcontractor agreement with Jiawei, manufacture and sell its products; uncertainties related to government assistance and incentives; risks from various economic factors such as credit market conditions, fluctuations in currency exchange rates and other risks and uncertainties identified in the company’s filings with the Securities and Exchange Commission. Evergreen Solar disclaims any obligation to update or revise such statements to reflect any change in company expectations, or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Contacts Evergreen Solar, Inc.Michael El-Hillow, 508-251-3311Chief Financial

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1 comment:

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