UPDATE 1-Canadian Solar signs deal with supplier; shares up

(Recasts, adds details and share movement)

Nov 26 (Reuters) - China's Canadian Solar Inc (CSIQ.O) said it signed an annual solar cell supply contract with its key Taiwanese supplier for about $60 million, sending its shares up by more than 4 percent.

The deal with Gintech Energy Corp involves the shipment of solar cells between 17 mega watts (MW) and 22 MW to Canadian Solar, which makes solar modules that convert sunlight into electricity. The shipment will begin in January 2008.

Canadian Solar's products are built for residential, commercial and industrial solar power generation systems as well as customized modules for use in other functions such as solar-powered bus stop lighting and car battery charges.

Canadian Solar shares, which have risen 47.6 percent year-to-date before Monday's gains, were trading up 63 cents at $16.10 in morning trade on the Nasdaq. The shares touched a high of $16.66 earlier in the session. (Reporting by Manish Gupta and Sakthi Prasad in Bangalore; Editing by Himani Sarkar)