With the fast expanding solar industry, there is tremendous competitive pressure to secure silicon, both further out in time and up and down the supply chain. That's why this deal between Solon AG and Q-Cells is just typical.

Solon AG is a solar module manufacturer, i.e. a component assembler of solar Pv panels. Q-Cells make mono and polycrystalline silicon cells, which the company claims have highest efficiency commercially available at 16%.

The agreement enables SOLON to buy forward solar cells from Q-Cells for a total price of EUR 350 million during the period to 2010. Solon closed yesterday at 29.22.