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CSIQ to Supply Modules to REDSET

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Canadian Solar Australia, a wholly owned subsidiary of Canadian Solar Inc. (CSIQ) has entered into an agreement to supply solar modules to REDSET. Per the deal, Canadian Solar will deliver more than 20 MW of high-performance solar modules per annum to REDSET.

REDSET is engaged in distributing solar products, serving a system of over 1,000 licensed installers across Australia. It has storehouses in Adelaide, Brisbane, Melbourne, Perth, Sydney and Townsville, where the experienced solar power experts provide support to local installers. REDSET will use the solar modules to power a range of commercial and residential installations.

Canadian Solar caters to a geographically-diverse customer base spread across its key markets in Germany, Spain and the U.S., as well as the emerging market in France, the Czech Republic, Italy, South Korea, Canada, Japan and China.

Recently, Canadian Solar has supplied its CS6P-P solar power modules to Engineering, Procurement and Construction Contractor TSK Solar for the "San Fermin" solar power plant. The solar power plant with a generation capacity of 26 MW is developed by TSK Solar in collaboration with Uriel Renewables inc. and Coqui Power LLC. A few days back, the company was chosen to supply solar modules to Turkey's first and largest governmental solar PV project. Canadian Solar will supply these products to Gehrlicher Merk Solar Enerji A.S., which is an equally owned JV between German photovoltaic company, Gehrlicher Solar AG and Turkish Akfel Group.

Canadian Solar is a vertically-integrated manufacturer of silicon ingots, wafers, cells, solar modules and custom-designed solar power applications. The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide. Canadian Solar’s standard solar modules are manufactured on general specifications for use in various residential, commercial, and industrial solar power generation systems.

However, in the near term, we are concerned regarding the industry-wide oversupply, leading to a sharp fall in Average Selling Prices, tepid module demand in Europe and rising competition in the market.

Like its peers SunPower Corporation (SPWR) and LDK Solar Co. Ltd. (LDK), the company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

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