Slight orders improvement for JA Solar Holdings Co., Ltd. (NASDAQ: JASO)

The cooperation will benefit both the companies. JA Solar gets a loyal customer and Solar Power benefits from the long term supply agreement. According to JA Solar's CEO, Samuel Yang, the agreement will allow expanding the company's sales as well as deeper their penetration into the U.S. market.

"This is a true strategic relationship with strong mutual benefit. It will allow us to leverage our vertical integration business model through a significant amount of supply and we will be able to offer competitive pricing that we believe is unprecedented," Steve Kircher, CEO of Solar Power, Inc. commented. "It also provides our SPI commercial operations and our growing Yes! Solar SolutionsTM franchise network with strong advantages in cost of installation and will have a significant positive effect on our competitive position relative to international sales," Mr. Kircher added.

Still, the new deal will most probably have only little positive effect on JA Solar's performance. As the company has announced earlier , they have experienced significant slowdown in orders, and one additional deal isn't likely to change the whole situation. This might be a start, but it will not affect the company's Q4 performance which is already calculated to be one of the worst quarters of last year.

JA Solar's stock went up nearly 7% during Friday's trading. Since the whole market was down throughout the day, the move in share price was mostly because of the news announcement. Still, there was no big change in trading volume which means there is no certainty the stock will continue up on Monday.