Friday, December 7, 2007

Neo Solar Power secures NT$4 billion syndicated loan

Nuying Huang, Taipei; Emily Chuang, DIGITIMES [Friday 7 December 2007]

Neo Solar Power on December 6 announced that it has signed syndicated loan of NT$4 billion (US$123 million) with five banks to fund its expansion and materials procurement.

Frank Huang, chairman of Neo Solar and Powerchip Semiconductor Corporation (PSC), commented the performance of Neo Solar Power is the best among the PSC Group. The company had an annual output of 36MWp in 2007 while capacity for the full year of 2008 is already nearly fully occupied, Huang added.

Neo Solar Power CEO KS Lin added that the company has a capacity of 60MWp at present. With a new plant to come on board in 2008, annual capacity and annual output will reach 210MWp and 150MWp, respectively.

Nearly 70% of Neo Solar's materials will be supplied on a contract basis for the next two years, pointed out Lin. China-based supplier LDK Solar has agreed to settle orders with the company based on new pricing in 2010 as the company plans to enter polysilicon production, noted industry sources.

The company is also preparing a NT$3 billion fund raising project which will be carried out at the end of the year or next year, according to market sources. The industry watchers estimated that the company will see its annual revenues triple to NT$14 billion in 2008.

ZTE fires billion-yuan shot at energy revenue

ZTE Corp, three of its sister companies and its chairman have invested 1.29 billion yuan (US$174 million) to expand into the energy sector, the Shenzhen-listed company said yesterday.

ZTE, China's biggest public trade telecom equipment company, told the Shenzhen Stock Exchange the associates will establish a joint venture.

ZTE will pay 300 million yuan for 23.26 percent of the JV and Chairman Hou Weigui will take a 1.55-percent stake.

Two associated companies, Zhongxing WXT and Zhongxing Development, will each take a 23.26-percent stake for 300 million yuan and ZTE International will pay 370 million yuan for 28.67 percent, making it the biggest shareholder in the JV called Zhongxing Energy Ltd, ZTE said.

"By forming the JV, the group can further enhance its external investment structure, increase its investment return and develop new profit-generating business," ZTE said in its statement to the exchange.

The scope of the new company covers research and development, investment, generation and sales in the area of energy business.

ZTE's share price rose 2.1 percent to 49.68 yuan against a 3.14-percent jump in the Shenzhen Composite Index yesterday.

China's renewable energy market has the biggest long-term growth potential in Asia.

Market revenue from renewable energy, including wind, biomass and solar, may exceed overall growth by more than 20 percent until 2020, because of the high level of support from the Chinese leadership, according to Merrill Lynch, a US-based investment bank.

ZTE's focus, however, will remain on telecommunications.

ZTE was the biggest winner in the latest 3G network equipment bid from China Mobile, industry insiders said.

ZTE generated a net profit of 603 million yuan in the first nine months, 45.92 percent growth year-on-year, while global giants such as Ericsson reported a decline in profit in the third quarter.

ZTE said yesterday it has an order from China Netcom to supply an IPTV (Internet protocol TV) system in the northern Dalian city, based on homegrown IPTV technology.

(Shanghai Daily December 6, 2007)

Trina Building $1B Polysilicon Plant

Trina Agrees to Develop $1 Billion Polysilicon Plant by 2012
December 05, 2007: 10:01 AM EST

NEW YORK (Associated Press) - Solar-products maker Trina Solar Ltd. said Wednesday it agreed to develop a $1 billion polysilicon plant by 2012 with assistance from the local government in the China's Jiangsu Province.

Trina expects to spend $150 million next year to finance the initial phase, the scale of which was trimmed from $455 million to create 3,858 tons of capacity. Trina did not say how much capacity is now targeted for the initial phase.

The company is "examining several alternatives" to lessen the impact of project financing on earnings, Chief Executive Jifan Gao said in a statement.

The Lianyungang Municipality will supply land and electric power for the facility, which is expected to have annual production capacity of 11,023 tons by the end of 2012.

By creating its own polysilicon plant, Trina will reduce its reliance on a tight market for the key solar-product feedstock for which prices have risen dramatically.

The company recently said its planned production output will be used for Trina Solar's own feedstock requirements and will only meet part of the total expected feedstock requirements to support future anticipated growth. Trina Solar said it will continue to be a net purchaser of feedstock materials and will continue to work with its long-term polysilicon supply partners.

trina Solar shares rose $4.17, or 8.5 percent, to $53.15 in morning trading.