Shares digital

The producer of multi-crystalline silicon ingots for the solar energy industry, PV Crystalox Solar (PVCS), has inked a deal with one of its suppliers of polysilicon, the main material it uses in making its solar energy applications.

The deal means the supplier will maintain current annual delivery volumes and extend contracted supply until 2014, providing polysilicon for producing the equivalent of 450 megawatts of wafers over the five-year period.

PV Crystalox joined the main list last summer and its shares shot up 24% to 163p in the following weeks. They are back around the IPO price at 131.5p and trade on a 2009 PE of 12.8 versus 15 for its peers, according to analysts at investment bank Kaupthing, which has a 164p target price for the shares.

Shares says: The deal makes the company more competitive, and the solar sector is growing.

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by: Carlo Svaluto