Solar EnerTech Corp. (OTC BB:SOEN.OB – News) (the "Company") wishes to announce the signing of a Memorandum of Understanding ("MOU") with Khandelwal Solar Power Limited, of Noida, India.
The Khandelwal Group, with 35 years of experience behind it, is a leading player in the semiconductor industry in India, and in collaboration with Siemens A.G. of West Germany manufactures electrical components such as silicon-controlled rectifiers, triacs, power transistors, and other related products. The company proudly possesses the largest diffusion facility for the manufacture of silicon chips in the sub continent. As semi-conductors are a key technology in the manufacture of solar photovoltaic cells and panels, the Khandelwal Group has created a new subsidiary, Khandelwal Solar Power Limited ("KSPL"), as a dedicated entity focused on penetrating the Solar marketplace as a natural diversification opportunity for the company.
The MOU agreement establishes the framework towards the formation of a strategic partnership aimed at developing product sales in India as well as opening additional markets throughout Asia. The agreement outlines a six-year plan whereby KSPL would be supplied solar materials and products alongside technical training and consultative expertise on the design and manufacture of customized solar applications.
The framework further elaborates that within fiscal 2007, Khandelwal will purchase 2Mw of solar cells and modules, representing an approximate $7.5 million in revenue for Solar EnerTech. Furthermore, KSPL agrees to purchase an additional 20Mw of solar modules and 10Mw of solar cells in 2008, and from 2009 to 2012, Khandelwal will annually purchase 20Mw of solar modules and 20Mw of solar cells in order to supply projected market demands within India.
In recent months, Khandelwal Group executives have made two investigative trips to China during which, they visited six solar manufacturing companies prior to the selection and commencement of negotiations with Solar EnerTech. It was noted that a significant factor for determining the outcome is Solar EnerTech's R&D depth and specialized research programs. Khandelwal intends to shortly send a group of engineers and technicians to join the research efforts conducted at the Company's Joint R&D Lab at Shanghai University.
Solar EnerTech views the MOU as a market driver aimed directly into a region boasting the 2nd largest population in the world and looks forward to commensurate opportunities for growth. Upon signing the MOU, Rakesh Khandelwal, Managing Director of KSPL, stated, "It is really a win-win alliance for both KSPL and Solar EnerTech: Khandelwal brings in new markets for Solar EnerTech, while Solar EnerTech brings us advances in solar cell technology and training, together with a ready supply of high-quality products ready to sell throughout our country."
About Solar EnerTech Corp. (OTC BB:SOEN.OB – News)
Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise based in Shanghai, China where the Company has established a sophisticated 42,000-square foot manufacturing plant in Shanghai's Jinqiao Modern Technology Park. This facility is capable of producing 25Mw of solar cells from its current production line and 50Mw upon completion of the second line slated for Q4 of this year. Solar EnerTech has also established a Joint R&D Lab at Shanghai University to research and develop higher efficiency cells and to put the results of that research to use immediately in its manufacturing processes. Led by one of the industry's top scientists, the Company's R&D program will work to bring Solar EnerTech to the forefront of advanced solar technology research and production. The Company has also established a marketing, purchasing and distribution arm in Northern California's Silicon Valley.
Except for statements of historical fact, the information presented herein may contain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Solar EnerTech Corp. has little or no control.