Friday, February 27, 2009

China Sunergy Signs Solar Cell Sales Agreement With U.S. Based Manufacturer of Photovoltaic Products

China Sunergy to Ship 20MW to 25MW of Solar Cells in 2009 to Photovoltaic Firm

NANJING, China, Feb. 24 /PRNewswire-Asia/ -- China Sunergy Co., Ltd. (Nasdaq: CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a wafer purchase agreement and a solar cell sales agreement with a U.S. based photovoltaic products firm.

Pursuant to the terms of the agreements, China Sunergy will utilize the multi-silicon wafers purchased from the firm to produce multi-silicon solar cells, which will then be sold back to the firm for incorporation into its downstream solar products. Based on the forecast provided by the U.S. based manufacturer, a total of 20MW to 25MW of solar cells will be supplied by China Sunergy throughout 2009.

The agreements may be replaced by an OEM tolling agreement between China Sunergy and the manufacturer, which is expected to come into force in April 2009. The parties expect that the OEM tolling agreement would not alter the basis of the purchasing and sales terms currently outlined in the existing contracts.

Commenting on the news, Dr. Ruennsheng Allen Wang, CEO of China Sunergy, remarked:

''The securing of this year-long agreement with our U.S. partner, especially during a period of instability within the solar sector, demonstrates that China Sunergy is able to execute on our strategy of signing financially profitable, mutually beneficial agreements with a diverse set of customers. We will continue to seek out additional suitable partners for our advanced solar products across a wide spectrum of geographies and industry segments.''

Thursday, February 26, 2009

KYOCERA Breaks Ground on New Solar Module Plant in China

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced the construction of a new solar module manufacturing plant in Tianjin City, China in order to expand production capacity at KYOCERA (Tianjin) Solar Energy Co., Ltd. (herein Kyocera Tianjin Solar).

Construction of the new plant is timed to align the production capacity of solar modules with the increase in production of solar cells which Kyocera is set to expand to 650MW by March, 2012. Manufacturing modules mainly for the Asian market, the target production capacity of Kyocera Tianjin Solar will be bolstered to the eventual goal of 240MW from 2011, an increase to four times the current capacity of 60MW.

Construction of the new manufacturing plant will begin in April, with completion scheduled for spring of 2010. Upon completion of the new plant, all Kyocera Tianjin Solar manufacturing operations will subsequently be transferred to the new facility.

On February 18, the groundbreaking ceremony for the scheduled construction of the new plant was held on the site adjacent to the current facility.

Presently, the solar energy industry is garnering global attention. In 2003, anticipating future growth in the Asian market starting with China and Japan, Kyocera was the first Japanese company to establish a solar module manufacturing plant in China. With the Kyocera Group operating manufacturing facilities for solar modules in Japan, Mexico, the Czech Republic and the Tianjin facilities in China, Kyocera Tianjin Solar supplies solar modules to the leading Asian markets of Japan, South Korea and China as one of the group’s four global manufacturing centers.

Kyocera will continue to increase production capacity from here on to correspond with market demand, aiming for the further expansion of its solar energy business.

Details of the New KYOCERA (Tianjin) Solar Energy Co., Ltd. Plant

Start of Construction: April 2009 (scheduled)
Completion: Spring 2010 (scheduled)
Start of Operation: Gradual start of operations from spring 2010 (scheduled)
Building Area: 9,600m2
Floor Area: 28,800m2 (3 floors)


About KYOCERA

Kyocera Corporation (NYSE:KYO)(TOKYO:6971) (http://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and plastics, and integrating them with other technologies, Kyocera has become a leading supplier of solar power generating systems, telecommunications equipment, laser printers, copiers, electronic components, semiconductor packages, cutting tools and industrial ceramics. During the year ended March 31, 2008, the company’s net sales totaled 1.29 trillion yen (approximately US$12.9 billion).

Suntech Reports Fourth Quarter and Full Year 2008 Financial Results

SAN FRANCISCO and WUXI, China, Feb. 18 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the fourth quarter and full year ended December 31, 2008.

Fourth Quarter 2008 Financial Highlights(1)

-- Total net revenues grew 4.2% year-over-year to $414.4 million.

-- GAAP gross margin was 0.6% and non-GAAP(2) gross margin was 0.9%.
Excluding the provision for inventory and purchase commitments,
adjusted non-GAAP consolidated gross margin in the fourth quarter
was 13.1%.

-- GAAP net loss was $65.9 million, or negative $0.42 per diluted
American Depository Share (ADS). On a non-GAAP basis, Suntech's net
loss was $42.4 million, or negative $0.27 per diluted ADS. Each ADS
represents one ordinary share.

-- Net debt decreased by $273.7 million to $1,117.8 million as of
December 31, 2008.

Full Year 2008 Financial Highlights(1)

-- Total net revenues grew 42.7% year-over-year to $1,923.5 million.

-- Full year 2008 total shipments of solar products grew 36.0%
year-over-year to 497.5 MW.

-- GAAP gross margin was 17.8% and non-GAAP(2) gross margin was 18.2%.

-- GAAP net income for the full year was $111.0 million or $0.66 per
ADS. On a non-GAAP basis, Suntech's net income for the full year was
$149.7 million or $0.89 per diluted ADS.

-- Achieved 1GW solar cell and module production capacity.

"Customer recognition of Suntech's high performance and premium quality modules enabled us to deliver close to 500MW in the full year 2008 and extend our position as a world leader in solar," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "During 2008, we bolstered our on-the-ground customer service and support capability by opening branches in key markets and hiring experienced solar professionals, achieved 1GW production capacity, and demonstrated our strength in solar innovation with the successful commercialization of our Pluto technology."

"We believe that we are now in a position to service all avenues of solar demand globally, including residential roof-top, commercial roof-top, ground mounted and utility scale. In particular, our continued investment in the U.S. should position us for strong growth in that key market and its burgeoning utility-scale segment via our systems integration unit, Suntech Energy Solutions, and our project development joint venture, Gemini Solar."

"Despite the challenging market conditions, we are confident that we are well positioned to expand our market share in 2009. We believe that the project financing environment is improving and will continue to do so as the year progresses, leading to further growth of the solar industry. We are confident that Suntech's reputation as a global solar leader will benefit us as more and more customers realize the value in partnering with a company that offers stability, first class service, industry-leading scale, superior technology, quality and a broad product portfolio," added Dr. Shi.

RECENT BUSINESS HIGHLIGHTS

Silicon Procurement
-- Suntech and MEMC Electronic Materials amended their 10-year silicon
wafer supply agreement. As amended, the dollar value of silicon
wafer purchases from MEMC remains unchanged, but a volume increase
and a price reduction for 2009 have been effectuated.

-- Suntech acquired a minority stake in Asia Silicon Co. Ltd, an
independent polysilicon producer, for a total cash consideration of
approximately $8.1 million. Suntech previously entered into an
agreement to purchase up to $1.5 billion high purity polysilicon
from Asia Silicon over a seven-year period. Polysilicon cost
decreases to less than $40 per kilogram during the term of the
agreement.

Notable PV Projects
-- Suntech was chosen to design and construct a BIPV system totaling
3MW on the China and Theme Pavilions at the World Expo Shanghai 2010.
The project will be the largest BIPV installation in China.

-- Suntech supplied 5MW of Suntech solar panels for the largest solar
plant in the Middle East, a 10MW solar electricity system to power
Masdar City, the world's first carbon neutral city being built in
Abu Dhabi, United Arab Emirates. The solar system is being built and
designed by leading Abu Dhabi based solar power system integrator,
Enviromena Power Systems.

Product Offering Expansion
-- Suntech entered into an exclusive agreement giving Suntech rights
related to the worldwide manufacturing, distribution and marketing
of Applied Solar's building integrated solar roof tile product,
SolarBlend(TM), and roof membrane product, SolarEze(TM). The
agreements combine Suntech's industry-leading products with Applied
Solar's innovative BIPV applications to provide a more comprehensive
set of product offerings to the residential and commercial market.

U.S. Dealer Network
-- Suntech continued expanding its dealer network of residential
rooftop installers and integrators in the U.S. Currently, Suntech's
network includes over 100 dealers, up from 30 at the end of the
third quarter of 2008.

Technology
-- Suntech has a fully operational 34MW Pluto PV cell line and is in
the process of adding another 68MW of Pluto capacity. Suntech
expects to receive industry certification for Pluto PV modules in
the second quarter of 2009 and targets shipments of more than 50MW
of Pluto modules in 2009.

-- The Pluto high efficiency technology consistently achieves
conversion efficiencies of close to 17% on multi-crystalline PV
cells and close to 19% on mono-crystalline PV cells. Suntech
anticipates that the higher conversion efficiencies will improve
power output by up to 12% above conventional screen-printed PV cells,
enable improved space utilization and reduce installation and other
balance of system costs.

Convertible Senior Note Repurchase
-- Through December 31, 2008, Suntech repurchased $93.8 million
aggregate principal amount of its 0.25% Convertible Senior Notes due
2012 for cash consideration of $61.0 million. As a result, Suntech
realized a net gain of approximately $31.1 million.

Capital and Credit Facilities
-- Suntech had approximately $2.4 billion of approved credit lines to
be used for fixed asset purchase, working capital or trade financing
as of December 31, 2008. Of these credit facilities approximately
$1.2 billion had been drawn down as of December 31, 2008. Suntech
expects that its capital will be sufficient to cover its capital
expenditures in 2009 while maintaining adequate working capital to
support its operations.



Fourth Quarter 2008 Results


Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin

(in $ % of Net (in $
millions) Revenues millions) (%)

Standard PV Modules $382.6 92.3 % $11.4 3.0 %
Others $31.8 7.7 % ($7.8) (24.0%)
Total Net Revenues $414.4 100 % $3.6 0.9 %

Provision for
inventory and
purchase
commitment $50.7 12.2 %
Adjusted Non-GAAP
Gross Profit $54.3 13.1 %


Total net revenues for the fourth quarter of 2008 were $414.4 million, a decrease of 30.3% from $594.4 million in the third quarter of 2008. The sequential decrease in revenues was primarily due to a decrease in shipments and the average selling price of PV products.

Non-GAAP gross profit for the fourth quarter of 2008 was $3.6 million, compared to $129.7 million for the third quarter of 2008.

Fourth quarter of 2008 non-GAAP consolidated gross margin was 0.9%, compared to 21.8% in the third quarter of 2008. Gross margin decreased from the third quarter of 2008 primarily due to a sequential decrease in the average selling price of PV products and a provision for inventory and purchase commitments of $50.7 million in total, reflecting the rapid decrease in the silicon and module prices in the fourth quarter. The provision for inventory and purchase commitments had a 12.2% negative impact on margins. Excluding the provision for inventory and purchase commitments, adjusted non- GAAP consolidated gross margin in the fourth quarter was 13.1%, and adjusted non-GAAP net income margin was 2.0%.

Non-GAAP operating expenses in the fourth quarter of 2008 totaled $41.9 million or 10.1% of total net revenues, compared to $37.1 million or 6.2% of total net revenues in the third quarter of 2008. The increase was primarily due to an increase in provisions for doubtful debts and additional compensation expenses attributable to employees at Suntech Energy Solutions, which was acquired during the fourth quarter.

Non-GAAP loss from operations for the fourth quarter of 2008 was $38.2 million, compared to income from operations of $92.6 million in the third quarter of the 2008. Non-GAAP operating margin was negative 9.2% in the fourth quarter of 2008, compared to positive 15.6% in the third quarter of 2008.

Net interest expense was $8.0 million in the fourth quarter of 2008 compared to net interest expense of $7.9 million in the third quarter of 2008.

In January 2009, Suntech adopted Financial Accounting Standards Board Staff Position No. APB 14-1, Accounting for Convertible Debt Instruments that may be Settled in Cash Upon Conversion ("FSP APB 14-1"). The Company is currently assessing the impact of adopting FSP APB 14-1, which the Company believes will be material to its results of operations. FSP APB 14-1 requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate.

Foreign currency exchange loss was $3.2 million in the fourth quarter of 2008, compared to a loss of $16.6 million in the third quarter of 2008. The decrease was primarily due to a revaluation gain from the depreciation of net liabilities denominated in CNY in the fourth quarter of 2008. The exchange gain was largely offset by the revaluation loss resulting from the significant depreciation of net assets denominated in EUR.

Net other expenses increased to $19.7 million in the fourth quarter of 2008 from $3.2 million in the third quarter of 2008. The increase in net other expenses was primarily due to an investment impairment of $48.8 million for Suntech's investments in Hoku and Nitol, which was partially offset by a net gain of $31.1 million from the repurchase of the Convertible Senior Notes at a discount.

Non-GAAP net loss for the fourth quarter of 2008 was $42.4 million, or negative $0.27 per diluted ADS, compared to non-GAAP net income of $60.3 million, or $0.35 per diluted ADS in the third quarter of 2008.

On a GAAP basis, for the fourth quarter of 2008 gross profit was $2.3 million. Consolidated gross margin was 0.6% for the fourth quarter of 2008.

On a GAAP basis, operating expenses for the fourth quarter of 2008 were $46.2 million or 11.1% of total net revenues. Loss from operations was $43.8 million for the fourth quarter of 2008. Net loss for the fourth quarter of 2008 was $65.9 million, or negative $0.42 per diluted ADS.

In the fourth quarter of 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $109.1 million. Depreciation and amortization expenses totaled $11.6 million.

Cash and cash equivalents increased to $507.8 million as of December 31, 2008 from $394.6 million as of September 20, 2008. The increase was mainly due to the accelerated collection of VAT recoverable and the liquidation of short- term investments. The increase was partially offset by the cash payments for the repurchase of the Convertible Senior Notes and repayment of bank borrowings. As a result of the foregoing, the net debt balance decreased from $1,391.5 million as of September 30, 2008 to $1,117.8 million as of December 31, 2008.

Restricted cash was $70.7 million as of December 31, 2008.

Inventory totaled $231.9 million as of December 31, 2008 compared to $247.9 million as of September 30, 2008. The decrease was primarily caused by the inventory provision.

Value-added tax recoverable totaled $75.7 million as of December 31, 2008, compared to $201.8 million as of September 30, 2008. The decrease was mainly due to the accelerated collection of some value-added tax recoverable in the fourth quarter of 2008.



Full Year 2008 Results

Net Non-GAAP Non-GAAP
Revenues Gross Profit Gross Margin

(in $ % of Net (in $
millions) Revenues millions) (%)

Standard $1,785.8 92.8 % $343.8 19.3 %
PV
Modules
Others $137.7 7.2 % $5.7 4.1 %
Total Net $1,923.5 100 % $349.5 18.2 %
Revenues


Total net revenues for the full year 2008 were $1,923.5 million, representing a 42.7% increase from 2007.

On a non-GAAP basis, the full year 2008 gross profit was $349.5 million, an increase of 22.7% year-over-year. 2008 consolidated gross margin was 18.2% compared to 21.1% in 2007. Income from operations was $205.7 million compared to $215.1 million in 2007. Net income was $149.7 million or $0.89 per diluted ADS, compared to non-GAAP net income of $201.0 million or $1.19 per diluted ADS in the full year 2007.

On a GAAP basis, for the full year 2008 gross profit was $342.9 million, an increase of 25.1% year-over-year. 2008 gross margin was 17.8% compared to 20.3% in 2007. Income from operations was $182.5 million, a decrease of 0.8% year-over-year. Net income was $111.0 million, a decrease of 35.2% year-over- year, or $0.66 per diluted ADS, compared to net income of $171.3 million or $1.02 per diluted ADS in the full year 2007.

In the full year 2008, capital expenditures, which were primarily related to expanding production capacity and constructing Suntech's production facilities, totaled $347.9 million. Depreciation and amortization expenses totaled $39.3 million.

Business Outlook

Based on current operating conditions, Suntech expects revenues for the first quarter of 2009 to be in the range of $340 million to $380 million, assuming an exchange rate of $1.28 U.S. dollars to the Euro in the first quarter 2009. GAAP consolidated gross margin in the first quarter of 2009 is expected to be in the range of 12% to 15%.

Suntech expects full-year 2009 shipments of more than 800MW. Suntech intends to hold PV cell production capacity at 1GW in 2009 until credit market visibility improves. Suntech expects capital expenditures of approximately $100 million in 2009. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency Pluto technology and the completion of the thin film facility.

Canadian Solar cuts 2009 shipment outlook

Feb 17 (Reuters) - China's Canadian Solar Inc (CSIQ.O) cut its 2009 shipment outlook, citing uncertainty in financial markets, and does not expect revenue to cover input costs in the fourth quarter of 2008.

"Gross margin in the fourth quarter is expected to be negative, reflecting the weak euro, a decline in module pricing in December and an inventory revaluation provision," Canadian Solar said.

The solar-cell maker forecast 2009 shipments of 300 to 350 megawatts (MW), down from its prior outlook of 500 to 550 MW.

The company said that near-term solar demand and pricing were being hit by the current credit environment, winter weather in Germany and market-wide inventory clearance efforts.

For the fourth quarter of 2008, the company forecast revenue of $66 million to $71 million, compared with analysts' average estimate of $69.3 million. (Reporting by Arup Roychoudhury in Bangalore; Editing by Pratish Narayanan)

Trina Solar Announces Selected Estimated Fourth Quarter and Full Year 2008 Financial Results

CHANGZHOU, China, Feb. 17 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, today announced the following selected estimated financial results for the quarter and the full year ended December 31, 2008.

For the fourth quarter 2008, the Company expects:
-- total net revenues for the fourth quarter to exceed its previous
guidance range of $190 million to $210 million
-- fourth quarter positive net operating cashflow to be approximately $60
million
-- short-term debt to be reduced by approximately $41 million to $249
million
-- a non-cash inventory provision between $16 million and $18 million


For the full year 2008, the Company expects:
-- total net revenues for the full year 2008 to meet its previous guidance
range of $800 million to $850 million
-- total module shipments for the full year 2008 to meet its previous
guidance range of 200 MW to 206 MW


"Against a very challenging operating environment, where preservation of cash and balance sheet fundamentals were our priorities, the notable reduction in both our silicon and non-silicon manufacturing costs resulted in our highest ever quarterly operating cashflow," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "This allowed us to significantly reduce our short-term debt to further improve our capital structure and maintain our liquidity for 2009."

The Company also announced that it anticipates a non-cash inventory provision between $16 million and $18 million mainly due to the revaluation of its silicon inventory linked to notable market price declines in the fourth quarter of 2008. The provision is expected to have a negative gross margin impact of 7% to 8%. With this provision, the Company expects its fourth quarter gross margin to be in the range of 9% to 10%, compared to its earlier previous guidance of 13% to 15%. The Company also expects its operating and net margins would be correspondingly affected.

As these selected estimated results are subject to finalization of the Company's financial closing procedures, the Company's actual results may differ from its current estimates.

The Company will review its fourth quarter and full year 2008 results via conference call on March 3, 2009 at 8:00 am (EST). Conference call details may be found via separate announcement, available at the company's website at http://www.trinasolar.com.

Wednesday, February 25, 2009

China Suntech says '09 output to rise 60 pct

* Output in 2009 expected to rise 60 pct

* Prices down 20 percent since the third quarter

* May increase capacity in 2009 if financial crisis eases

BEIJING, Feb 17 - China's Suntech Power, the world's largest solar module maker, said on Tuesday it expected production to rise 60 percent this year to at least 800 megawatts, as demand remains strong in Europe.

The company could resurrect a plan suspended earlier this year to expand capacity by 40 percent to 1.4 gigawatts, but will hold off on a decision until the impact from the global financial crisis is more transparent.

Suntech, which makes the panels that turn sunlight into electricity, expects full-year 2008 revenues between $1.91 billion and $1.93 billion.

Shi Zhengrong, the founder and chairman of Suntech Power Holdings Co, said that the financial crisis was affecting his industry, leading to a 20 percent cut in prices since the third quarter of last year.

"We have already signed over 600 megawatts of contracts with our European customers," Shi told Reuters in a telephone interview.

"We are still aiming for at least 800 megawatts of production for this year," he said. The entrepreneur said production was about 500 megawatts last year. "Business is still good."
renewable
DEMAND SLOWED

Financing for new renewable energy products has become difficult as banks around the world have tightened lending amid the worst economic slowdown in decades.

As demand slowed in the fourth quarter, Suntech laid off 10 percent of its 8,000-strong workforce and suspended a plan to expand capacity to 1.4 gigawatts in 2009.

However, the planned expansion could be restarted later this year if the effects on customers from the financial crisis ease.

"We want to hold capacity at one gigawatt until the financial situation becomes more clear," he said.

"It could come back on line later this year, we will see," he said, referring to the planned capacity increase.

While demand remained strong, Shi said prices had fallen as overcapacity weighed on producers.

"Prices have already fallen 20 percent from Q3 last year," he said, referring to the third quarter, but said that prices have now stabilised.

"I think prices are now more or less stabilised. There was a panic in the fourth quarter," he said.

Shi said lower prices would lead to a rise in demand in Europe, the destination for 80 percent of his output because of state subsidies for clean energy.

And while President Barack Obama's backing of renewable energy in the United States could potentially be another big source of demand for Suntech's products, Shi does not expect to see the increase in demand this year.

"We don't expect a surge in orders from the U.S. because it takes time to happen."

Tuesday, February 24, 2009

Suntech Buys Stake in Asia Silicon for $8.1M

Ucilia Wang

February 17, 2009

Suntech Power Holdings (NYSE: STP) has invested about $8.1 million in Asia Silicon, which has been supplying Suntech with the raw material for making solar cells.

Suntech, based in Wuxi, China, said Tuesday it bought a minority stake from an existing shareholder of Asia Silicon, which is located in Qinghai, China.

Back in 2007, Suntech said it had signed a seven-year, $1.5 billion deal with Asia Silicon. Asia Silicon was to begin delivering the material in the second half of 2008. Suntech said at the time that the contract would give it the cheapest silicon it could find. The company also said it would pay more than $40 per kilogram for the first half of the deal, and less than $40 per kilogram for the remainder of the contract.

Asia Silicon is a new entrant in the market. The company said it began producing silicon at the end of last year, and is revving up its manufacturing pace to reach 2,000 metric tons per year by the middle of this year.

Owning a piece of a silicon company could prove a good move at a time when silicon prices are falling rapidly. The trend, coupled with the economic downturn that has softened market demand, has prompted many solar cell makers to renegotiate their contracts with silicon makers.

Silicon makers aren't immune to market forces, however, and Suntech has seen its investments in two silicon makers, Nitol Solar and Hoku Materials, taking a dive. Suntech said last month that it would incur a charge between $49 million and $52 million in its fourth quarter financials as a result of its stakes in Nitol and Hoku.

Hoku, based in Pocatello, Idaho, recently said it could have trouble building its very first silicon factory because a few of its customers couldn't make the advanced payments that would help to pay for building the factory in Idaho.

Suntech is scheduled to release its quarterly earnings Wednesday.

JA Solar signs solar cell supply agreement with BP Solar International

BEIJING, Feb 13, 2009 (Xinhua via COMTEX) -- China's high-performance solar product producer JA Solar Holdings Co., Ltd. (JASO.Nasdaq) will supply monocrystalline and polycrystalline solar cells to BP Solar International Inc. in 2009 with an initial volume of 175 MW, according to latest announcement by JA Solar.

The ultimate solar cell delivery may reach as much as 360 MW within 2009, according to the announcement.

This supply agreement is pursuant to the broader strategic cooperation agreement signed between JA Solar and BP Alternative Energy Holdings Limited in November of last year.

Samuel Yang, CEO of JA Solar, said, "We believe this extended agreement with BP will positively affect our business in 2009 and the years beyond."

Additionally, JA Solar plans to announce the operating results for the fourth quarter of 2008 and the annual financial report of 2008 in the second week of March 2009.

JA Solar lowers 2009 revenue expectations

Associated Press, 02.11.09

Chinese solar cell maker JA Solar Holdings Co. on Wednesday again lowered its revenue forecast for 2009, citing global financial weakness and tight credit markets.

Shares of the company tumbled on the news, dropping 25 cents, or 8.3 percent, to $2.76 in aftermarket trading, having closed the regular session at $3.01.

The company currently expects 2009 revenue of $830 million to $952 million. Analysts surveyed by Thomson Reuters, on average, expect 2009 revenue of $993.8 million.

In November, the company cut its revenue projection to between $1.43 billion and $1.66 billion from a prior forecast of $2 billion to $2.2 billion.

JA Solar (nasdaq: JASO - news - people )'s target for total production output is now 500 megawatts to 550 megawatts. The nameplate production capacity by year-end 2009 is now expected to be 875 megawatts.

Based in Shanghai with manufacturing operations in Hebei and Yangzhou, China, JA Solar Holdings is a leading manufacturer of high-performance solar cells. The company sells its products to solar manufacturers worldwide, who assemble and integrate solar cells into modules and systems that convert sunlight into electricity for residential, commercial and utility-scale power generation.

Yingli Green Energy Reports Fourth Quarter and Full Year 2008 Results

BAODING, China, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) (''Yingli Green Energy'' or the ''Company''), one of the world's leading vertically integrated photovoltaic (''PV'') product manufacturers, today announced its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2008.

Fourth Quarter 2008 Consolidated Financial and Operating Highlights

-- PV module shipments totaled 78.8 MW.
-- Total net revenues were RMB 1,761.2 million (US$258.1 million).
-- Gross profit was RMB 232.9 million (US$34.1 million) and gross margin
was 13.2%.
-- Operating income was RMB 97.8 million (US$14.3 million) and operating
margin was 5.6%.
-- Net income was RMB 100.6 million (US$14.7 million) and diluted earnings
per ordinary share and per American depositary share (''ADS'') were
RMB 0.79 (US$0.12).
-- On an adjusted non-GAAP(1) basis, net income was RMB 126.8 million
(US$18.6 million) and diluted earnings per ordinary share and per ADS
were RMB 0.99 (US$0.15).

Full Year 2008 Consolidated Financial and Operating Highlights

-- PV module shipments were 281.5 MW, compared to the Company's previous
guidance of 270 MW to 280 MW.
-- Total net revenues were RMB 7,553.0 million (US$1,107.1 million),
compared to the Company's previous guidance of US$1,053 million to
US$1,106 million.
-- Gross profit was RMB 1,629.6 million (US$238.9 million).
-- Net income was RMB 682.1 million (US$100.0 million) and fully diluted
earnings per ordinary share and per ADS were RMB 5.27 (US$0.77).
-- On an adjusted non-GAAP(1) basis, net income for the full year 2008 was
RMB 782.8 million (US$114.7 million) and fully diluted earnings per
ordinary share and per ADS were RMB 6.04 (US$0.89).
-- New sales contracts bring total PV module sales under contract for
delivery in 2009 to 317.4 MW.
(1) All non-GAAP measures exclude share-based compensation and
amortization of intangible assets arising from purchase price
allocation in connection with a series of acquisitions of equity
interest in Baoding Tianwei Yingli New Energy Resources Co., Ltd.
(''Tianwei Yingli''), an operating subsidiary of the Company. For
further details on non-GAAP measures, please refer to the
reconciliation table and a detailed discussion of the Company's use of
non-GAAP information set forth elsewhere in this earnings release.


''In spite of difficult global economic and market conditions, we are pleased to report that we exceeded our shipment volume and total net revenue targets for the full year 2008,'' commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We continue to see the benefits of our vertically integrated model, which allows us to bring our high quality modules to market at competitive prices, and believe that Yingli Green Energy is well-positioned to capture additional market share in 2009. To further enhance our position in the increasingly competitive PV industry, we will continue pursuing initiatives to enhance our product quality, brand recognition and our sales and distribution channels around the world.''

''To strengthen our market presence and enhance our comprehensive customer service, we have established offices and subsidiaries in key markets including Germany, Spain, Italy and the United States. In addition, Yingli Green Energy entered into a long-term strategic cooperation with TUV Rheinland (Shanghai) Co., Ltd. Under the strategic partnership, TUV Rheinland will conduct periodic factory inspections to review production, testing and calibration procedures and assist Yingli Green Energy in certification planning and execution to support new product introductions, which will provide our customers with an additional level of quality assurance,'' Mr. Miao continued.

''Our recent acquisition of Cyber Power and its polysilicon manufacturing subsidiary, Fine Silicon, is a key step toward the full vertical integration of our manufacturing processes. We believe this acquisition will not only help us secure high quality polysilicon to meet our customers' demands for top quality PV products but will also help control and stabilize our polysilicon costs to improve our margins as well as further increase visibility to achieving grid parity,'' Mr. Miao continued.

''Furthermore, to be better positioned to face challenges during this economic downturn, we have been actively sourcing additional capital to support the execution of our strategic business plan and have recently completed a number of financing transactions with domestic and overseas financial institutions.''

''We remain confident in the long-term fundamentals of the solar industry and believe our steady progress towards grid parity, combined with the supportive renewable energy policies of major governments around the world, should position us to emerge as an even stronger player,'' Mr. Miao concluded.

Fourth Quarter 2008 Financial Results

Total Net Revenues

Total net revenues were RMB 1,761.2 million (US$258.1 million) in the fourth quarter of 2008, a decrease of 20.3% from RMB 2,209.8 million in the third quarter of 2008 and an increase of 21.2% from RMB 1,453.2 million in the fourth quarter of 2007. The decrease from the third quarter of 2008 was primarily due to a lower average selling price and slightly lower shipment volume. The average selling price for PV modules(2) in the fourth quarter of 2008 was US$3.19 per watt, a decrease of 21.0% from US$4.04 per watt in the third quarter of 2008. Total PV module shipments decreased 1.5% to 78.8 MW in the fourth quarter of 2008 from 80.0 MW in the third quarter of 2008. The decreases in both average selling price and shipments were mainly caused by weakened demand as the result of weakened macroeconomic conditions, including changes in the feed-in tariff policy in Spain and tighter credit for PV system project financing. Furthermore, as a majority of the Company's PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by the depreciation of the Euro against the Renminbi in the fourth quarter of 2008.

(2) We compute average selling price of PV modules per watt for a given
period as the total sales of PV modules divided by the total watts of
the PV modules sold during such period, and translated into U.S.
dollars at the noon buying rate at the end of such period as certified
for customs purpose by the Federal Reserve Bank of New York.

Gross Profit and Gross Margin

Gross profit in the fourth quarter of 2008 was RMB 232.9 million (US$34.1 million), a decrease of 52.7% from RMB 492.6 million in the third quarter of 2008 and a decrease of 35.2% from RMB 359.6 million in the fourth quarter of 2007. Gross margin was 13.2% in the fourth quarter of 2008, down from 22.3% in the third quarter of 2008 and 24.7% in the fourth quarter of 2007. The decrease in gross margin was primarily due to the decrease in the average selling price caused primarily by weakened macroeconomic conditions and the depreciation of the Euro against the Renminbi, and was partially offset by the reduced unit cost of PV modules resulting from lower cost of blended polysilicon in the fourth quarter of 2008 and lower polysilicon usage per watt achieved through the Company's continued research and development efforts.

Operating Expenses

Operating expenses in the fourth quarter of 2008 were RMB 135.1 million (US$19.8 million), compared to RMB 115.5 million in the third quarter of 2008 and RMB 92.6 million in the fourth quarter of 2007. Operating expenses as a percentage of total net revenues increased to 7.7% in the fourth quarter of 2008 from 5.2% in the third quarter of 2008 and 6.4% in the fourth quarter of 2007. The increase in operating expenses as a percentage of total net revenues was primarily attributable to higher research and development expenses, increased general and administrative expenses relating to financing transactions recognized in the fourth quarter of 2008, and decreased total net revenues.

Operating Income and Margin

Operating income in the fourth quarter of 2008 was RMB 97.8 million (US$14.3 million), a decrease of 74.1% from RMB 377.1 million in the third quarter of 2008 and a decrease of 63.4% from RMB 267.0 million in the fourth quarter of 2007. Operating margin decreased to 5.6% in the fourth quarter of 2008 from 17.1% in the third quarter of 2008 and 18.4% in the fourth quarter of 2007.

Interest Expense

Interest expense was RMB 48.5 million (US$7.1 million) in the fourth quarter of 2008, compared to RMB 31.6 million in the third quarter of 2008 and RMB 19.6 million in the fourth quarter of 2007. The increase in interest expense was consistent with both the increase in short-term borrowings from RMB 1,794.9 million as of September 30, 2008 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from RMB 340.9 million as of September 30, 2008 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in the fourth quarter of 2008 was 7.18%, which increased from 6.76% in the third quarter of 2008.

Foreign Currency Exchange Gain (Loss)

Foreign currency exchange gain was RMB 68.7 million (US$10.1 million) in the fourth quarter of 2008, compared to a foreign currency exchange loss of RMB 133.1 million in the third quarter of 2008 and a foreign currency exchange loss of RMB 29.2 million in the fourth quarter of 2007. The foreign currency exchange gain in the fourth quarter of 2008 was primarily due to a gain of RMB 107.0 million from foreign currency forward contracts realized in the fourth quarter of 2008, which was partially offset by an exchange loss of RMB 38.3 million from foreign currency denominated transactions, primarily accounts receivables and raw material prepayments denominated in Euros, as the Euro depreciated by 3.41% against the Renminbi in the fourth quarter of 2008.

Income Tax Benefit (Expense)

Income tax benefit was RMB 17.0 million (US$2.5 million) in the fourth quarter of 2008, compared to RMB 0.2 million in the third quarter of 2008 and an income tax expense of RMB 15.3 million in the fourth quarter of 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli Energy (China) Co., Ltd (''Yingli China''), the Company's wholly-owned subsidiary, were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.

Net Income

As a result of the factors discussed above, net income was RMB 100.6 million (US$14.7 million) in the fourth quarter of 2008, a decrease of 33.3% from RMB 150.8 million in the third quarter of 2008 and a decrease of 27.3% from RMB 138.4 million in the fourth quarter of 2007. Diluted earnings per ordinary share and per ADS were RMB 0.79 (US$0.12) in the fourth quarter of 2008, compared to RMB 1.17 in the third quarter of 2008.

On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company, net income was RMB 126.8 million (US$18.6 million) in the fourth quarter of 2008, down 27.7% from RMB 175.3 million in the third quarter of 2008. Adjusted non-GAAP diluted earnings per ordinary share and per ADS were RMB 0.99 (US$0.15) in the fourth quarter of 2008, compared to RMB 1.35 in the third quarter of 2008.

Balance Sheet Analysis

As of December 31, 2008, Yingli Green Energy had RMB 1,108.9 million (US$162.5 million) in cash and RMB 3,224.1 million (US$472.6 million) in working capital, compared to RMB 737.1 million in cash and RMB 3,372.8 million in working capital as of September 30, 2008. Short-term borrowings increased from RMB 1,794.9 million in the third quarter of 2008 to RMB 2,044.2 million (US$299.6 million) in the fourth quarter of 2008. Long-term bank borrowings increased from RMB 340.9 million in the third quarter of 2008 to RMB 663.0 million (US$97.2 million) in the fourth quarter of 2008. As of the date of this press release, the Company had approximately RMB 4,545 million in authorized lines of credit, of which RMB 3,040 million had been utilized. Days sales outstanding was 75 days in the fourth quarter of 2008, compared to 48 days in the third quarter of 2008, primarily as a result of weakened macroeconomic conditions.

Full Year 2008 Results

Total Net Revenues

Total net revenues for the full year 2008 were RMB 7,553.0 million (US$1,107.1 million), which increased by 86.1% from RMB 4,059.3 million in the year of 2007. The increase was primarily due to a significant rise in total shipments of PV modules, which increased to 281.5 MW in 2008 from 142.5 MW in 2007. The increase in total shipments was primarily due to the Company's expanded sales and marketing efforts in Europe, supported by the completion of an additional 200 MW of total production capacity of polysilicon ingots and wafers, PV cells and PV modules in September 2008. The average selling price for PV modules for the full year 2008 was US$3.88 per watt, slightly higher than US$3.86 per watt in 2007.

Gross Profit and Margin

Gross profit for the full year 2008 was RMB 1,629.6 million (US$238.9 million), which increased by 70.3% from RMB 956.8 million in the year of 2007. Gross margin was 21.6% for the full year 2008, compared to 23.6% in 2007. The decrease in gross margin for the full year 2008 was primarily due to the lower gross margin in the fourth quarter of 2008, which was the result of significantly weakened macroeconomic conditions in the fourth quarter of 2008 and the depreciation of the Euro and the U.S. dollar against the Renminbi.

Operating Expenses

Operating expenses for the full year 2008 were RMB 476.3 million (US$69.8 million), an increase of 71.8% from RMB 277.3 million in 2007. The increase in operating expenses was primarily due to higher research and development expenses and increased marketing and promotional efforts resulting from the Company's expanded scale of operations. Operating expenses as a percentage of revenue decreased to 6.3% in the full year 2008 from 6.8% in the year of 2007, primarily due to economies of scale and better control of sales and marketing expenses and general and administrative expenses.

Interest Expense

Interest expense for the full year 2008 was RMB 149.2 million (US$21.9 million), an increase of 130.1% from RMB 64.8 million in 2007. The increase in interest expense was consistent with the increase in short-term borrowings from RMB 1,261.3 million as of December 31, 2007 to RMB 2,044.2 million (US$299.6 million) as of December 31, 2008 and the increase in long-term bank borrowings from nil as of December 31, 2007 to RMB 663.0 million (US$97.2 million) as of December 31, 2008. The weighted average interest rate for these borrowings in 2008 was 6.61%, which increased from 5.97% in 2007.

Income Tax Benefit (Expense)

Income tax benefit was RMB 19.5 million (US$2.9 million) for the full year 2008, compared to an income tax expense of RMB 12.9 million for the full year 2007. The increase in income tax benefit was mainly due to a decrease of RMB 14.5 million (US$2.1 million) in enterprise income tax expense, which resulted from a decrease in the estimated future income tax rates since Tianwei Yingli and Yingli China were recognized by the Chinese government in December 2008 as ''High and New Technology Enterprises'' entitled to a preferential enterprise income tax rate of 15% under the PRC Enterprise Income Tax Law.

Net Income

Net income was RMB 682.1 million (US$100.0 million) and fully diluted earnings per ordinary share and per ADS were RMB 5.27 (US$0.77) for the full year 2008.

On an adjusted non-GAAP basis, which excludes share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, net income was RMB 782.8 million (US$114.7 million) for the full year 2008. Adjusted non-GAAP fully diluted earnings per ordinary share and per ADS were RMB 6.04 (US$0.89) for the full year 2008.

Fourth Quarter 2008 and Recent Business Highlights

Sales
-- As of the date of this press release, the Company had signed sales
contracts for the delivery of approximately 317.4 MW of PV modules in
2009.

Financing
-- Yingli China entered into a credit agreement with a fund managed by
Asia Debt Management Hong Kong Limited for a three-year loan facility
of up to US$80.0 million.
-- In connection with its acquisition of Cyber Power, the Company
committed to issue senior secured convertible notes totaling up to
US$50.0 million to Trustbridge Partners II, L.P., US$20.0 million of
which has been issued.
-- Yingli China entered into an eight-year US$70 million loan agreement
with China Development Bank.
-- Tianwei Yingli entered into a new credit line trade finance facility
agreement with the Export-Import Bank of China ("China Eximbank"),
which brought the aggregate credit line available from China Eximbank
to RMB 1.0 billion or its U.S. dollar equivalent.
-- Long term credit facility agreement, entered into with DEG - Deutsche
Investitions - und Entwicklungsgesellschaft mbH and the Netherlands
Development Finance Company, expanded to US$75 million with the
inclusion of The Societe de Promotion et de Participation pour la
Cooperation Economique to the lending group.

Others
-- Appointment of a new Chief Technology Officer, Dr. Dengyuan Song, who
has more than 27 years of experience in the research and development of
photovoltaic cells, silicon materials and semiconductor PV devices.
-- Tianwei Yingli and Yingli China were recognized by the Chinese
government as ''High and New Technology Enterprises'' entitled to a
preferential enterprise income tax rate of 15% for three years under
the PRC Enterprise Income Tax Law.
-- Completion of US$77.6 million acquisition of Cyber Power Group Limited,
which, through its principal operating subsidiary in China, Fine
Silicon Co., Ltd., plans to begin production of solar-grade polysilicon
in the second half of 2009.
-- Appointment of a new Vice President of Technology, Mr. Jingfeng Xiong,
a highly respected executive and engineer with a wealth of theoretical
knowledge and practical experience in research and development and
manufacturing at Yingli Green Energy.
-- Entered into memorandum of understanding with TUV Rheinland (Shanghai)
Co., Ltd. to form a strategic partnership covering a range of quality
control initiatives at the Company.


Business Outlook for Full Year 2009

Based on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates for the U.S. dollar, Euro and Renminbi, the Company reaffirms that its PV module shipment target is expected to be in the estimated range of 550 MW to 600 MW for fiscal year 2009, which represents an increase of 96.1% to 113.9% compared to fiscal year 2008, subject to, among other factors, the successful installation and ramp-up of the Company's additional 200 MW planned expansion in the third quarter of 2009.

In addition, after taking into consideration the Company's mid- to long-term virgin polysilicon supply agreements, estimated polysilicon prices in 2009, the negative impact of expected decreases in the average selling price of PV modules and further depreciation of the Euro against the U.S. dollar, the Company currently expects that its gross margin target for fiscal year 2009 to be in the estimated range of 22% to 24%.

Non-GAAP Financial Measures

To supplement the financial measures calculated in accordance with generally accepted accounting principals in the United States, or GAAP, this press release includes certain non-GAAP financial measures of adjusted net income and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted to exclude items related to share-based compensation and amortization of intangible assets arising from purchase price allocation in connection with a series of acquisitions of equity interest in Tianwei Yingli, an operating subsidiary of the Company. The Company believes excluding these items from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such items are not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. The Company also believes these non-GAAP financial measures are important to help investors understand the Company's current financial performance and future prospects and compare business trends among different reporting periods on a consistent basis. These non-GAAP financial measures should be considered in addition to financial measures presented in accordance with GAAP, but should not be considered as a substitute for, or superior to, financial measures presented in accordance with GAAP. For a reconciliation of each of these non- GAAP financial measures to the most directly comparable GAAP financial measure, please see the financial information included elsewhere in this press release.

Currency Convenience Translation

The conversion of Renminbi into U.S. dollars for the fourth quarter and full year 2008 in this earnings release, made solely for the purpose of reader's convenience, is based on the noon buying rate in the New York City for cable transfers of Renminbi as certified for customs purpose by the Federal Reserve Bank of New York as of December 31, 2008, which was RMB 6.8225 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at such rate, or at any other rate. The percentages stated in this earnings release are calculated based on Renminbi.

Friday, February 6, 2009

China to build a 10 MW solar PV power plant in Dunhuang

BEIJING, Feb 05, 2009 (Xinhua via COMTEX) -- On March 20, China's economic planner, National Development and Reform Commission (NDRC), will unveil who wins the bid for constructing a 10 MW solar photovoltaic (PV) power generation plant in Dunhuang of Northwest China's Gansu Province.

"By now, 38 enterprises have joined the bidding for the construction job including one from Denmark, one from Germany and 36 domestic ones," said Zhao Pingqian, an official with Dunhuang's development and reform commission.

Chinese bidders include China Power Investment Corporation, China Huaneng Group, China Guodian Corporation, China Datang Corporation, China Huadian Corporation and Suntech Power Holdings Co., Ltd. (STP.NYSE), according to Zhao.

Covering one million square meters, the solar PV power plant involves a total investment of 500 million yuan and will generate on average 16.37 million kilowatt hours of electricity each year.

Zhao said, "Bidders paid a visit to the building site in mid January and a briefing is expected to be held in February."

The bid winners are obligated to complete the construction of the solar PV power plant within 18 months and are franchised to operate the project for 25 years, according to NDRC.

Statistics show that China has only approved three solar PV power generation projects, including one 1-MW project on Shanghai's Chongming Island and one 225-KW project in Ordos of Inner Mongolia Autonomous Region.

China To Invest $85 Billion In Energy Sector

February 4, 2009

Chinese state media announced Wednesday the country would invest 580 billion yuan ($85 billion) to expand its energy industry in 2009, including investment in nuclear and wind-powered capacity.

State-owned power companies are increasing their investments to meet growing demand and boost economic growth. In addition to increased investment in coal-fired generation, plans call for spending on wind, nuclear and solar power, according to Chinese state television.

China will build eight more nuclear plants with a total of 16 reactors over the next three years, according to the China Daily newspaper.

The country has 11 nuclear reactors supplying about 1% of its power, and Beijing wants to raise that share to 5%, said the newspaper.

Source: http://www.cleantechbrief.com

Yingli Green Energy Appoints New Chief Technology Officer

BAODING, China, Feb. 3 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) (''Yingli Green Energy'' or the ''Company''), one of the world's leading vertically integrated photovoltaic (''PV'') product manufacturers, today announced the appointment of Dr. Dengyuan Song to the position of Chief Technology Officer. Dr. Song will oversee Yingli Green Energy's research and development initiatives, particularly the development of state-of-the-art and cost-competitive PV products as an integral part of the Company's overall business strategies. Dr. Song will replace Dr. Guoxiao Yao, who has resigned to pursue other interests.

Dr. Song has more than 27 years of experience in the research and development of solar cells, silicon materials, and semiconductor PV devices in both Australia and China, including nearly 10 years of research and development in silicon-based solar cells, polycrystalline silicon thin-film solar cells and third-generation solar cells at the ARC Photovoltaics Centre of Excellence at the University of New South Wales in Sydney, Australia. Prior to joining UNSW, Dr. Song served as a professor at Hebei University in China, where his teaching and research covered a broad spectrum of topics, including solar cells, silicon materials, photoelectric devices and automation engineering. Dr. Song has published and presented over 150 papers in scientific and technical journals and at various PV industry conferences.

''I am very pleased to welcome Dr. Song to the Yingli team,'' said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. ''We believe Dr. Song's deep industry knowledge and extensive technical expertise will contribute to our leadership in the renewable energy sector. We have always recognized the importance of improving yield rates, increasing cost savings and enhancing cell conversion efficiencies. We look forward to having Dr. Song lead our efforts in these areas while strengthening our focus on innovation and the creation of superior technology throughout the Company.''

''We greatly appreciate the contributions Dr. Yao made during his tenure at Yingli and we wish him the best in his future endeavors,'' Mr. Miao concluded.

Canadian Solar launches new PV cell research center in China's Suzhou

BEIJING, Feb 02, 2009 (Xinhua via COMTEX) -- China-based solar product producer Canadian Solar Inc. (CSIQ.Nsadaq) announced that it has officially opened a new PV cell research center in East China's Suzhou in partnership with Dupont, University of Toronto and Shanghai Jiao Tong University.

This research center will consolidate all R&D facilities of Canadian Solar in one place in order to heighten the efficiency and product yield of both regular polysilicon cells and proprietary solar grade e-cells.

Now, the research center is staffed with 20 scientists, engineers and technicians with ultimate workers to be as many as 38.

Canadian Solar has paid most of the outlay for the construction of this facility in 2008, which will have total cost of 10 million U.S. dollars and 1,500 square meters of acreage.

Qu Xiaohua, chairman and CEO of Canadian Solar, said that this solar company aims to improve average cell efficiency for polysilicon/monocrystalline cells to 18.5 percent and solar grade cells to 15.5 percent within 12 months.

The cooperation between Canadian Solar and DuPont will focus on solar grade cells, according to Canadian Solar.

Canadian Solar has chosen selective emitter, N-type and back-contact cells and other high efficiency structures for study in a bid to raise efficiency.