Hanwha SolarOne Co., Ltd. ("Hanwha SolarOne" or the "Company") (NASDAQ: HSOL), a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic ("PV") cells and modules in China, announced it has entered into a supply agreement with Photowatt Ontario, Inc. ("PWO"), a wholly owned subsidiary of ATS Automation Tooling Systems Inc. ("ATS") (ATA.TO), where PWO will produce Hanwha SolarOne PV modules to serve the Ontario marketplace.
The agreement is for PWO to produce and deliver approximately 160 megawatts of modules over four years, using cells supplied by Hanwha SolarOne, with the potential for the parties to increase the volumes by up to another 160 megawatts over the four-year period. The modules, which are intended to serve demand in connection with the Ontario Feed in Tariff ("FIT") program, will be fully compliant with FIT and microFIT Program domestic content requirements. Shipments are currently expected to begin in October, 2011. The contract is subject to PWO satisfying itself with respect to certain technical information to be provided by the Company.
Under the agreement, PWO will produce the modules at its PV module facility in the Green Wing of the ATS campus in Cambridge, Ontario. The "Made in Ontario" production facility, designed and built by the ATS Automation Systems Group's Cambridge division, serves Ontario's rapidly growing demand for solar energy products in its residential, commercial and industrial markets as well as large-scale solar fields.
Dr. Peter Xie, President and Chief Executive Officer of Hanwha SolarOne, commented, "We are pleased to expand our brand to the Ontario market by joining forces with two of Canada's finest local manufacturing companies, PWO and ATS. Ontario's commitment to long-term renewable energy investment under the Ontario Green Energy Act provides us many favorable incentives for future growth. Likewise, Hanwha SolarOne's high-quality, cost-effective PV modules are especially suited to the needs of Ontario's domestic developers. The local expertise of PWO, combined with our established and growing presence in North America, will allow us to offer close management of distributors and superior customer support to the province."
Bruce Ludemann, Vice President & General Manager of Hanwha SolarOne, North America, reported that the Company will establish a regional office in Ontario staffed with business development, technical support and administrative personnel.
Chris Waters, Vice President and General Manager of PWO, added, "We are very pleased to enable to assist a proven international photovoltaic company such as Hanwha SolarOne to establish in Ontario. ATS's core strengths in manufacturing automation, combined with PWO's solar manufacturing excellence give us an advantage in serving the rapidly growing Ontario renewable energy market. For these reasons, we are the partner of choice for many global PV companies and domestic developers alike. Working closely with ATS, PWO has the solar and automation know-how, facilities and resources to rapidly expand module production capacity as demand from the Ontario marketplace continues to grow."
"Our new customer relationship with Hanwha SolarOne is another positive development for PWO and its employees in Cambridge, as PWO continues to grow as a leading provider of solar solutions in Ontario and beyond," said Anthony Caputo, President and Chief Executive Officer of ATS. "The Green Energy Act, feed-in tariff program and domestic content goals have provided an excellent foundation for both ATS and PWO to apply our skills and experience to serving our home market."
