Tuesday, September 2, 2008

GT Solar and DC Chemicals sign $173M deal

By Mass High Tech Staff

GT Solar Inc., a manufacturer of photovoltaic equipment, has announced its signing of a $173 million contract with Korean chemical company DC Chemical Co. Ltd.

Under terms of the contract, GT Solar (Nasdaq: SOLR) will be responsible for supplying the Korean company with polysilicon CVD reactors, which help produce polysilicon to make solar cells.

The deal, the third contract between the two companies, was first made public on July 11 through a filing with the U.S. Securities and Exchange Commission.

DC Chemical manufactures polysilicon through its polysilicon plant. The reactors will increase production at the South Korean plant, the company said.

GT Solar executed its initial public offering in July, raising $500 million. The offering came more than a year after the company filed its original S-1 statement with the U.S. Securities and Exchange Commission in April of 2007.

GT Solar employs 150 people in Merrimack, N.H., and officials have reported they intend to add 80 employees as they add 60,000 square feet to their facility. The company reported $36.1 million in net income on $244.1 million in revenue last year (ending March 31) and has closed several big deals in recent months, including a previous, $200 million sale to DC Chemical Co. Ltd. of South Korea in March, and a $91 million contract with The Silicon Mine BV of the Netherlands.