DuPont (DD - Free Report) has entered into a $100 million agreement with Yingli Energy (China) Company Limited (Yingli China), a wholly owned subsidiary of Yingli Green Energy Holding Company Limited (Yingli Green Energy) to supply photovoltaic materials for solar model production. The deal is an expansion of a supply agreement between the companies announced in Feb 2012.
Per the agreement, Yingli China will purchase materials including DuPont Solamet photovoltaic metallization paste that will help to increase the power output of solar cells and DuPont Tedlar polyvinyl fluoride film that protects solar panels even in the harshest environmental conditions.
As per the deal, the collaboration will install a solar energy plant at a DuPont facility in China and will potentially install similar plants in additional sites. Both the companies have also come to terms to develop the next generation of high-efficiency solar cells and modules, along with co-marketing activities.
According to Yingli China, the cooperation with DuPont will further enhance its supply of critical and high-quality materials to optimize the performance of solar modules. DuPont on the other hand, believes that the agreement further expands their strategic relationship, and it looks forward to delivering superior quality solar panels that will increase the adoption of solar energy to meet the growing global demand for energy.
Yingli Green Energy Holding Company Limited is one of the world's largest vertically integrated photovoltaic suppliers. DuPont is a global chemical and life sciences company and provides innovative products, materials, and services to the global market.
DuPont currently retains a Zacks Rank #3 (Hold).
Other companies in the chemical industry that are worth considering include Shin-Etsu Chemical Co., Ltd. (SHECY - Free Report) , Celanese Corp (CE - Free Report) and Methanex Corp. (MEOH - Free Report) . All of them retain a Zacks Rank #1 (Strong Buy).