Glass Procurement & Wafer Slicing Deals For JA Solar

JA Solar’s contract with Flat Glass is aligned with its future business plans to ensure its long-term stable supply of raw materials, the Chinese vertically integrated solar module maker explained. (Photo Credit: TaiyangNews)
JA Solar’s contract with Flat Glass is aligned with its future business plans to ensure its long-term stable supply of raw materials, the Chinese vertically integrated solar module maker explained. (Photo Credit: TaiyangNews)
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  • JA Solar has contracted Flat Glass to supply its with 230 million sq. mtr. of rolled PV glass
  • Flat Glass will complete the RMB 4.618 billion order between August 1, 2021 to July 31, 2024
  • Qingdao Gaoce said it has received an order from JA Solar to supply it with wafer slicing equipment

Chinese integrated solar PV products manufacturer JA Solar Technology Co., Ltd. is stepping into deals in accordance with its future business plans with various suppliers. The latest deals are for its glass procurement and wafer slicing equipment.

Under the deal reached with PV glass supplier Flat Glass Group, JA Solar will purchase close to 230 million sq. mtr. of PV rolled glass between August 1, 2021 to July 31, 2024, post which both parties will decide it they would extend the arrangement. JA Solar said prices will be negotiated on monthly basis and the deal to cost around RMB 4.618 billion ($715 million), including taxes.

Flat Glass Group added that the agreement is beneficial to the company's market for large size and thin film PV glass products, and that the total contract value accounts for 74% of the company's 2020 audited operating income which added up to RMB 6.26 billion. Earlier in January 2021, Flat Glass signed a 338 million m² of rolled glass contract with JinkoSolar for a 3-year duration (see China PV News Snippets: CECEP, Luoyang, Jinko, JA). The glass supplier is also increasing its production capacity with 6 new lines to roll out 1,200 tons a day (see Flat Glass Group To Expand Production Capacity).

JA Solar said this contract will ensure its long-term stable supply of raw materials which will enable the company to maintain stable profitability.

In another deal signed with wafer slicing equipment manufacturer Qingdao Gaoce Technology Co., Ltd., JA Solar will pay RMB 158.88 million ($24 million) to purchase wafer slicing equipment. Gaoce is expected to deliver, install and commission the same between July 2021 and January 2022, along with offering quality assurance.

In an announcement, Gaoce said this contract if successfully executed will have a positive impact on its 2021 and 2022 operating results.

A proponent of 182mm wafer sized modules, JA Solar aims to grow its total module production capacity from 23 GW at the end of 2020, to exceed 40 GW by the end of 2021 (see JA To Up Module Capacity To 40 GW By Year End).

The share of large sized modules with 182mm and 210mm sized wafers is gradually increasing in the global solar supply chain, according to PV InfoLink that calls JA Solar as the 3rd largest solar module supplier in H1/2021 (see LONGi & Tongwei Top PV InfoLink's H1/2021 Ranking).

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