While the serviceable life of most solar panels is at least a couple of decades and some solar panel installations commissioned in the 1970's are still functioning today; at some stage in the time ahead a flood of panels will need to be disposed of - and preferably recycled.
Solar panels are essentially simple devices containing materials such as silicon, glass, aluminium and semiconductor materials that are all recyclable. Only a very small percentage of a solar panel's weight need ever be totally discarded. Recycling of solar panels is not only technically and economically feasible, but it could greatly decrease the overall ecological footprint associated with production
Suntech Power Holdings Co., Ltd. (stock: STP) the world's largest manufacturer of crystalline silicon photovoltaic (PV) modules, announced recently that the company has joined PV Cycle; a European association establishing a voluntary take-back and recycling program for solar panels. Suntech said that with 1GW of Suntech solar panels sold since its inception, the company believes it is essential that Suntech take a proactive role in developing effective recycling programs.
Through PV Cycle, the solar panel industry aims to develop overall waste management and recycling policy that achieves the highest economically feasible and environmentally responsible collection and recycling of PV modules. PV Cycle now covers around 80% of the European photovoltaic market with its 35 member companies spread around the world.
While PV Cycle is only covering the European market at present and no similar organisation yet exists in Australia, PV Cycle's efforts will certainly lay the groundwork that other regions will be able to follow.
Showing posts with label solar panel. Show all posts
Showing posts with label solar panel. Show all posts
Friday, May 8, 2009
CSI Reaches Funding Deal with City of Suzhou; Signs 5-MW Contract with Topinfrasolar
Toronto, Canada [RenewableEnergyWorld.com]
Canadian Solar Inc. announced that it has signed an agreement with the Suzhou New District, Suzhou municipal government to fund local solar projects. The Suzhou New District government has agreed to provide US $1.09 million in matching funds in conjunction with the subsidies provided by China's Ministry of Finance and Ministry of Constructions for building PV installations.
"These funds will be used to capitalize commercial rooftop and BIPV projects in the region of the municipality."
-- Dr. Shawn Qu, Chairman and CEO, Canadian Solar
These monies will be used to exclusively support solar projects undertaken by Canadian Solar in Suzhou New District. Other sources of project debt or equity will be arranged by the company or by the project owners.
"Canadian Solar is proud to announce, in cooperation with the Suzhou New District, that we are the first to jointly develop a municipal PV program using the renewable energy stimulus funds in China. These funds will be used to capitalize commercial rooftop and BIPV projects in the region of the municipality,” said Dr. Shawn Qu, chairman and CEO of Canadian Solar.
In related news, CSI has also announced that it has signed a new sales agreement with Topinfrasolar, a Korean systems integrator, which will expand the relationship and supply agreement by an additional 5 megawatts (MW).
sola
The contracted deliveries may include both regular and e-Modules and stipulates deliveries for Korean installations in 2009. CSI and Topinfrasolar have had a successful business relationship since the beginning of 2009 that has already resulted in the successful delivery to five projects of approximately 3 MW in total.
"We are also very pleased to work with Canadian Solar, one of the world class suppliers of solar photovoltaic panels. We have so far implemented several solar farm projects in Korea using Canadian Solar modules and we are impressed by their consistently superior module quality. With this new contract, we look forward to continuing our relationship with Canadian Solar and to offering long-term reliable returns to our solar farm investors," said Hyung Seok Oh, CEO of Topinfrasolar.
Canadian Solar Inc. announced that it has signed an agreement with the Suzhou New District, Suzhou municipal government to fund local solar projects. The Suzhou New District government has agreed to provide US $1.09 million in matching funds in conjunction with the subsidies provided by China's Ministry of Finance and Ministry of Constructions for building PV installations.
"These funds will be used to capitalize commercial rooftop and BIPV projects in the region of the municipality."
-- Dr. Shawn Qu, Chairman and CEO, Canadian Solar
These monies will be used to exclusively support solar projects undertaken by Canadian Solar in Suzhou New District. Other sources of project debt or equity will be arranged by the company or by the project owners.
"Canadian Solar is proud to announce, in cooperation with the Suzhou New District, that we are the first to jointly develop a municipal PV program using the renewable energy stimulus funds in China. These funds will be used to capitalize commercial rooftop and BIPV projects in the region of the municipality,” said Dr. Shawn Qu, chairman and CEO of Canadian Solar.
In related news, CSI has also announced that it has signed a new sales agreement with Topinfrasolar, a Korean systems integrator, which will expand the relationship and supply agreement by an additional 5 megawatts (MW).
sola
The contracted deliveries may include both regular and e-Modules and stipulates deliveries for Korean installations in 2009. CSI and Topinfrasolar have had a successful business relationship since the beginning of 2009 that has already resulted in the successful delivery to five projects of approximately 3 MW in total.
"We are also very pleased to work with Canadian Solar, one of the world class suppliers of solar photovoltaic panels. We have so far implemented several solar farm projects in Korea using Canadian Solar modules and we are impressed by their consistently superior module quality. With this new contract, we look forward to continuing our relationship with Canadian Solar and to offering long-term reliable returns to our solar farm investors," said Hyung Seok Oh, CEO of Topinfrasolar.
Monday, May 4, 2009
Sunny Hill Energy signs 55MW two-year module deal with Ningbo Solar Electric
01 May 2009
By Mark Osborne
Sunny Hill Energy, a U.S. solar financing and business support company, has signed a 55MW two-year module deal with Ningbo Solar Electric, China. Sunny Hill said that it had an estimated project pipeline of 50MW over the coming 12 months for residential and PPA-based markets.
"We're excited to have found the ideal solar panel solution for our residential and investment-grade projects," said Dorian Maras, CSO for Sunny Hill Energy. "NBSolar’s large European presence and 40-year history in solar technology manufacturing won us over. Additionally, we found great synergy between NBSolar's desire to enter the US market and our ability to develop it."
Ningbo Solar Electric produces monocrystalline-based modules.
By Mark Osborne
Sunny Hill Energy, a U.S. solar financing and business support company, has signed a 55MW two-year module deal with Ningbo Solar Electric, China. Sunny Hill said that it had an estimated project pipeline of 50MW over the coming 12 months for residential and PPA-based markets.
"We're excited to have found the ideal solar panel solution for our residential and investment-grade projects," said Dorian Maras, CSO for Sunny Hill Energy. "NBSolar’s large European presence and 40-year history in solar technology manufacturing won us over. Additionally, we found great synergy between NBSolar's desire to enter the US market and our ability to develop it."
Ningbo Solar Electric produces monocrystalline-based modules.
Tuesday, April 28, 2009
Solar EnerTech Establishes Joint Venture With Jiangsu Shunda Semiconductor Development Co. Ltd.
- JV Enhances Presence and Solar Opportunities in U.S. Market -
MENLO PARK, Calif., April 28 /PRNewswire-Asia-FirstCall/ -- Solar EnerTech Corp. (OTC Bulletin Board: SOEN) (the "Company") today announced the establishment of a joint venture with Jiangsu Shunda Semiconductor Development Co. Ltd. ("Jiangsu Shunda"), a leading PV raw material manufacturer, to pursue solar expansion opportunities in the U.S. region.
Jiangsu Shunda is one of the largest polysilicon and wafer manufacturers in China, with an annual production output of approximately 1,500 metric tons of polysilicon.
The U.S. JV company, which will be called Shunda-SolarE Technologies, Inc., is expected to begin operating in early May of 2009. The joint venture is expected to utilize Jiangsu Shunda's strength in polysilicon and wafer supply and Solar EnerTech's advanced solar cell technologies as well as its resources in the U.S. market. Overall, both parties believe the joint venture establishes a vertically integrated operation in the U.S. market with services ranging from the production of polysilicon to ingots and wafers, to solar cells, panels and solar system installation.
Jiangsu Shunda and Solar EnerTech contributed $1.0 million and $0.7 million in cash respectively to the initial setup cost of the JV. Jiangsu Shunda will own 55% of the JV company, Solar EnerTech will own 35% and the management of the JV will own the remaining 10%. Mr. Yunda Ni, President of Jiangsu Shunda will serve as the JV Chairman of the Board, Mr. Leo Young, CEO of Solar EnerTech will serve as the Board's Vice Chairman. The Board of Directors will be comprised of five seats, three of which will be reserved for Jiangsu Shunda and two for Solar EnerTech. A Chief Executive Officer of Shunda-SolarE Technologies is expected to be identified in the near future.
Mr. Leo Young, CEO of Solar EnerTech, commented, "We are extremely pleased to establish this joint venture with Jiangsu Shunda, a highly successful polysilicon manufacturer in China. We have a compelling opportunity to penetrate the U.S. market with the establishment of this JV. Solar EnerTech has strong R&D capabilities supported by an outstanding technical team, and a fully operational U.S. office governed by experienced management whereas Jiangsu Shunda maintains a UL listing, which is instrumental in conducting large scale operations in the U.S. market, and controls the upstream supply which can provide large volumes of silicon feedstock to the JV in order to secure sizeable contract orders in the growing U.S. market. Together, we can more easily penetrate U.S. solar opportunities and establish Shunda-SolarE as a leading brand recognized for high quality solar products and service. We plan on providing investors with additional information on this JV in the coming weeks and months ahead."
Mr. Ni, President of Jiangsu Shunda commented, "The goal of this joint venture is to build market share in the U.S. and maximize profitability. There is great synergy between both companies as well as with myself and Leo. Together, we believe we have an excellent opportunity to expand our market presence in the U.S. We look forward to a successful venture together."
Additional information on this joint venture can be found in the Company's filing with the SEC.
About Jiangsu Shunda
Based in Yangzhou, China, JiangSu Shunda Group focuses on the photovoltaic market and produces polysilicon, monocrystalline ingots, and wafers. With an annual production output of approximately 1,500 metric tons of polysilicon, Jiangsu Shunda Semiconductor is one of the largest polysilicon and wafer manufacturers in China.
About Solar EnerTech Corp.
Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise incorporated in the United States with its corporate office in Menlo Park, California. The Company has established a sophisticated 63,000 square foot manufacturing plant located in China, in Shanghai's Jinqiao Modern Technology Park. Currently, the Company is capable of producing 50MW of solar cells from its existing production line.
Solar EnerTech has also established a Joint R&D Lab at Shanghai University to develop higher efficiency cells and to put the results of that research to use in its manufacturing processes. Led by one of the industry's top scientists, the Company expects its R&D program to help bring Solar EnerTech to the forefront of advanced solar technology research and production.
MENLO PARK, Calif., April 28 /PRNewswire-Asia-FirstCall/ -- Solar EnerTech Corp. (OTC Bulletin Board: SOEN) (the "Company") today announced the establishment of a joint venture with Jiangsu Shunda Semiconductor Development Co. Ltd. ("Jiangsu Shunda"), a leading PV raw material manufacturer, to pursue solar expansion opportunities in the U.S. region.
Jiangsu Shunda is one of the largest polysilicon and wafer manufacturers in China, with an annual production output of approximately 1,500 metric tons of polysilicon.
The U.S. JV company, which will be called Shunda-SolarE Technologies, Inc., is expected to begin operating in early May of 2009. The joint venture is expected to utilize Jiangsu Shunda's strength in polysilicon and wafer supply and Solar EnerTech's advanced solar cell technologies as well as its resources in the U.S. market. Overall, both parties believe the joint venture establishes a vertically integrated operation in the U.S. market with services ranging from the production of polysilicon to ingots and wafers, to solar cells, panels and solar system installation.
Jiangsu Shunda and Solar EnerTech contributed $1.0 million and $0.7 million in cash respectively to the initial setup cost of the JV. Jiangsu Shunda will own 55% of the JV company, Solar EnerTech will own 35% and the management of the JV will own the remaining 10%. Mr. Yunda Ni, President of Jiangsu Shunda will serve as the JV Chairman of the Board, Mr. Leo Young, CEO of Solar EnerTech will serve as the Board's Vice Chairman. The Board of Directors will be comprised of five seats, three of which will be reserved for Jiangsu Shunda and two for Solar EnerTech. A Chief Executive Officer of Shunda-SolarE Technologies is expected to be identified in the near future.
Mr. Leo Young, CEO of Solar EnerTech, commented, "We are extremely pleased to establish this joint venture with Jiangsu Shunda, a highly successful polysilicon manufacturer in China. We have a compelling opportunity to penetrate the U.S. market with the establishment of this JV. Solar EnerTech has strong R&D capabilities supported by an outstanding technical team, and a fully operational U.S. office governed by experienced management whereas Jiangsu Shunda maintains a UL listing, which is instrumental in conducting large scale operations in the U.S. market, and controls the upstream supply which can provide large volumes of silicon feedstock to the JV in order to secure sizeable contract orders in the growing U.S. market. Together, we can more easily penetrate U.S. solar opportunities and establish Shunda-SolarE as a leading brand recognized for high quality solar products and service. We plan on providing investors with additional information on this JV in the coming weeks and months ahead."
Mr. Ni, President of Jiangsu Shunda commented, "The goal of this joint venture is to build market share in the U.S. and maximize profitability. There is great synergy between both companies as well as with myself and Leo. Together, we believe we have an excellent opportunity to expand our market presence in the U.S. We look forward to a successful venture together."
Additional information on this joint venture can be found in the Company's filing with the SEC.
About Jiangsu Shunda
Based in Yangzhou, China, JiangSu Shunda Group focuses on the photovoltaic market and produces polysilicon, monocrystalline ingots, and wafers. With an annual production output of approximately 1,500 metric tons of polysilicon, Jiangsu Shunda Semiconductor is one of the largest polysilicon and wafer manufacturers in China.
About Solar EnerTech Corp.
Solar EnerTech is a photovoltaic ("PV") solar energy cell manufacturing enterprise incorporated in the United States with its corporate office in Menlo Park, California. The Company has established a sophisticated 63,000 square foot manufacturing plant located in China, in Shanghai's Jinqiao Modern Technology Park. Currently, the Company is capable of producing 50MW of solar cells from its existing production line.
Solar EnerTech has also established a Joint R&D Lab at Shanghai University to develop higher efficiency cells and to put the results of that research to use in its manufacturing processes. Led by one of the industry's top scientists, the Company expects its R&D program to help bring Solar EnerTech to the forefront of advanced solar technology research and production.
Saturday, April 11, 2009
Q-Cells, LDK Solar Form Joint Venture
Ucilia Wang
April 8, 2009 at 12:06 PM
Q-Cells and LDK Solar said they are forming a joint venture to develop large-scale power plants to buyers in Europe and China.
LDK Solar has been supplying silicon wafers to Q-Cells, which turns those wafers into solar cells and sell them to panel makers. Q-Cells said the joint venture would enable both companies to work more closely together and offer better deals to customers. The joint venture, LQ Energy, would contract with panel makers to produce the panels for the power plant projects.
Both companies also figured that they could take advantage of each other’s marketing know-how in their home territories. LDK is based in China while Q-Cells is Germany. The companies said they have started their first, 40-megawatt project in Europe, and are shopping for a buyer.
Both companies have been hit by the economic downturn. Q-Cells has cut sales forecast for 2009 twice since December. LDK has delayed a factory expansion plan and has had to deal with customers who can’t pay as promised.
LDK’s shares on the New York Stock Exchange rose 4 percent in recent trading to reach $7.06 per share.
April 8, 2009 at 12:06 PM
Q-Cells and LDK Solar said they are forming a joint venture to develop large-scale power plants to buyers in Europe and China.
LDK Solar has been supplying silicon wafers to Q-Cells, which turns those wafers into solar cells and sell them to panel makers. Q-Cells said the joint venture would enable both companies to work more closely together and offer better deals to customers. The joint venture, LQ Energy, would contract with panel makers to produce the panels for the power plant projects.
Both companies also figured that they could take advantage of each other’s marketing know-how in their home territories. LDK is based in China while Q-Cells is Germany. The companies said they have started their first, 40-megawatt project in Europe, and are shopping for a buyer.
Both companies have been hit by the economic downturn. Q-Cells has cut sales forecast for 2009 twice since December. LDK has delayed a factory expansion plan and has had to deal with customers who can’t pay as promised.
LDK’s shares on the New York Stock Exchange rose 4 percent in recent trading to reach $7.06 per share.
Trina sees PV market to grow sharply
By Fu Chenghao | 2009-4-7 |
TRINA Solar Ltd, a leading solar product maker, expects China to account for 10 percent of the global photovoltaic market in three years to five years from less than 1 percent now as the government boosts support for the alternative energy.
"It's possible if we say, by 2012, China's installed solar PV capacity could reach 2.5 gigawatts while it would be 25GW for the world," Gao Jifan, Trina's chairman and CEO, said.
Although China is the world's top PV manufacturer, the domestic solar PV market has suffered from high costs and limited subsidies.
The Ministry of Finance said late last month that China would provide a subsidy of 20 yuan (US$2.93) per watt for solar projects that have a capacity of at least 50 kilowatts and attached to buildings, covering nearly half the cost.
Gao said the subsidy is a "precursor" of a long-term state support, although some analysts said the latest subsidy was limited to roof-top solar panels and not for large-scale solar projects.
New York-listed Trina, which is based in Changzhou, Jiangsu Province, expects to sell 10 megawatts in China this year out of a planned total shipment of up to 400MW of solar modules, Gao said.
In 2008, the domestic market accounted for only a bit more than 1 percent of its shipment of 201MW.
The United States market could account for 15 percent of Trina's sales this year, up from less than 5 percent in 2008, thanks to the Obama administration's backing of renewable energy sources, he said.
Trina is not in a hurry to acquire assets but is looking at opportunities, according to Gao who said Europe would remain a top market.
TRINA Solar Ltd, a leading solar product maker, expects China to account for 10 percent of the global photovoltaic market in three years to five years from less than 1 percent now as the government boosts support for the alternative energy.
"It's possible if we say, by 2012, China's installed solar PV capacity could reach 2.5 gigawatts while it would be 25GW for the world," Gao Jifan, Trina's chairman and CEO, said.
Although China is the world's top PV manufacturer, the domestic solar PV market has suffered from high costs and limited subsidies.
The Ministry of Finance said late last month that China would provide a subsidy of 20 yuan (US$2.93) per watt for solar projects that have a capacity of at least 50 kilowatts and attached to buildings, covering nearly half the cost.
Gao said the subsidy is a "precursor" of a long-term state support, although some analysts said the latest subsidy was limited to roof-top solar panels and not for large-scale solar projects.
New York-listed Trina, which is based in Changzhou, Jiangsu Province, expects to sell 10 megawatts in China this year out of a planned total shipment of up to 400MW of solar modules, Gao said.
In 2008, the domestic market accounted for only a bit more than 1 percent of its shipment of 201MW.
The United States market could account for 15 percent of Trina's sales this year, up from less than 5 percent in 2008, thanks to the Obama administration's backing of renewable energy sources, he said.
Trina is not in a hurry to acquire assets but is looking at opportunities, according to Gao who said Europe would remain a top market.
Canadian Solar Wins a Bid to a Rural Electrification Project in China
TORONTO, April 6 /PRNewswire-Asia/ -- Canadian Solar Inc. ("the Company", "Canadian Solar" or "we") (Nasdaq: CSIQ) today announced that we were recently selected in a competitive bidding process to supply solar panels for 80,000 solar home systems for rural households in Sichuan province of China. The total order size is 1.6 MW. This project was initiated and financed by China's Ministry of Agriculture and the Sichuan Provincial Government. The solar home systems are rated for a peak capacity of 20 Watts each. A system of this size can power two lights and a small TV. The delivery of the 80,000 units will be completed by April.
Dr. Shawn Qu, President and CEO of Canadian Solar said, "We were very pleased to win this bid. A solar home system makes a real impact on the lives of these rural households. In many cases it will be the first electrical power source these rural families have ever had. We are very proud to be part of this project. Canadian Solar has a business division devoted to the designing, manufacturing and installing solar home and solar village systems for rural electrification and has been actively involved in rural electrification projects in China since 2004."
Dr. Shawn Qu, President and CEO of Canadian Solar said, "We were very pleased to win this bid. A solar home system makes a real impact on the lives of these rural households. In many cases it will be the first electrical power source these rural families have ever had. We are very proud to be part of this project. Canadian Solar has a business division devoted to the designing, manufacturing and installing solar home and solar village systems for rural electrification and has been actively involved in rural electrification projects in China since 2004."
Saturday, January 31, 2009
Suntech and Standard Solar Reach 5 Megawatt Solar Panel Supply Agreement
Wednesday, Jan 28, 2009
SAN FRANCISCO and GAITHERSBURG, Md., Jan. 27/PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's leading manufacturer of photovoltaic (PV) modules, and Standard Solar, Inc. are looking forward to powering cleaner energy solutions throughout the Mid-Atlantic U.S. under a new agreement by which Suntech will supply up to 5 megawatts of photovoltaic solar panels to the Maryland-based solar developerand installer during 2009.
"Partnering with Suntech, a top-tier manufactureroffering a broad assortment of high-quality solar panels, better equipsStandard Solar to fulfill its rapidly growing customer requirements from NewJersey and Pennsylvania to North Carolina and Virginia," said ScottWiater, Vice President of Procurement at Standard Solar.
"Suntech looks forward to partnering with StandardSolar in supplying cleaner, cost-effective solutions to businesses, governmentagencies and homeowners. In addition to reducing the dependence on highlypolluting fossil fuels, we believe that the solar industry can also help togenerate new domestic, green jobs," said Roger Efird, President, SuntechAmerica, Inc.
In his address after taking the oath of office and becomingthe nation's 44th President, Barack Obama called for Americans to "harnessthe sun . . . to meet the demands of a new age."
"This agreement," said Standard Solar Presidentand Chief Executive Officer Anthony Clifford, "strengthens our ability torespond to this challenge. We cannot agree more with our new President when headded from the West front of the U.S. Capitol: "All this we can do. Andall this we will do."
Standard Solar looks forward to deploying Suntech's high-quality panels in solar solutions that deliver cost-effective power.Recently, Standard Solar helped Kelly & Sons Electrical Construction sourceits electricity supply through a power purchase agreement with Washington GasEnergy Services. Find more information about this power purchase agreement athttp://www.standardsolar.com/News-and-Events/Press-Releases.aspx.
Suntech recently achieved 1 gigawatt of global solar panel production capacity. In doing so, it completed an 18,000 square meter, 1megawatt solar facade -- the world's largest to date -- at its new world headquarters in Wuxi, China. You can find a photo of this precedent-setting application on Suntech's website at http://www.suntech-power.com under Press:Press Assets.
SAN FRANCISCO and GAITHERSBURG, Md., Jan. 27/PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's leading manufacturer of photovoltaic (PV) modules, and Standard Solar, Inc. are looking forward to powering cleaner energy solutions throughout the Mid-Atlantic U.S. under a new agreement by which Suntech will supply up to 5 megawatts of photovoltaic solar panels to the Maryland-based solar developerand installer during 2009.
"Partnering with Suntech, a top-tier manufactureroffering a broad assortment of high-quality solar panels, better equipsStandard Solar to fulfill its rapidly growing customer requirements from NewJersey and Pennsylvania to North Carolina and Virginia," said ScottWiater, Vice President of Procurement at Standard Solar.
"Suntech looks forward to partnering with StandardSolar in supplying cleaner, cost-effective solutions to businesses, governmentagencies and homeowners. In addition to reducing the dependence on highlypolluting fossil fuels, we believe that the solar industry can also help togenerate new domestic, green jobs," said Roger Efird, President, SuntechAmerica, Inc.
In his address after taking the oath of office and becomingthe nation's 44th President, Barack Obama called for Americans to "harnessthe sun . . . to meet the demands of a new age."
"This agreement," said Standard Solar Presidentand Chief Executive Officer Anthony Clifford, "strengthens our ability torespond to this challenge. We cannot agree more with our new President when headded from the West front of the U.S. Capitol: "All this we can do. Andall this we will do."
Standard Solar looks forward to deploying Suntech's high-quality panels in solar solutions that deliver cost-effective power.Recently, Standard Solar helped Kelly & Sons Electrical Construction sourceits electricity supply through a power purchase agreement with Washington GasEnergy Services. Find more information about this power purchase agreement athttp://www.standardsolar.com/News-and-Events/Press-Releases.aspx.
Suntech recently achieved 1 gigawatt of global solar panel production capacity. In doing so, it completed an 18,000 square meter, 1megawatt solar facade -- the world's largest to date -- at its new world headquarters in Wuxi, China. You can find a photo of this precedent-setting application on Suntech's website at http://www.suntech-power.com under Press:Press Assets.
Alcom Solar Equipments Obtained CNY78 mln VC from Govtor
The CNY78 million venture capital invested by Govtor will be used for Jiangyin Alcom’s development of solar battery fittings and solar integrated system, as well as its R&D center.
PRLog (Press Release) – Jan 21, 2009 – Jiangyin Alcom Solar Equipments Co., Ltd had signed strategic investment agreement with Jiangsu High-Tech Investment Group (Govtor) on Jan, 18, 2009 in order to maintain its leading position. The CNY78 million venture capital invested by Govtor will be used for Jiangyin Alcom’s development of solar battery fittings and solar integrated system, as well as its R&D center.
Founded in Mar, 2006, the sales revenue of Jiangyin Alcom reached CNY400 million in 2008. Its key product, aluminum frame special for solar battery panel, its precision has achieved 0.02mm, meeting the international advanced requirements. In addition, its solar frame had topped in the world successively from 2007 to 2008, accounting for 15% all over the globe. Alcom also had established the first solar fitting R&D center in Jun, 2008, and had applied for over 50 patents. Meanwhile, the first production line of solar EVA adhesive film with independent intellectual property rights, which Alcom had invested CNY80 million R&D expense, had been put into trial production in the beginning of 2009.
Govtor is one of the early provincial professional venture capital organizations in China. It has led and participated 27 professional venture capital funds in recent years, the management assets has reached CNY5 billion, and the accumulative investment projects has amounted to more than 140, as well as has helped 12 companies go public in domestic and international capital market. After the cooperation with Alcom, it will help Alcom to make, adjust and perfect the long-term development strategy, adjust optimizing business combination, integrate industry chain, and assist to establish standard management system and corporate structure, bring in strategic investors and high-grade management talents, and make up reasonable plans for going public.
PRLog (Press Release) – Jan 21, 2009 – Jiangyin Alcom Solar Equipments Co., Ltd had signed strategic investment agreement with Jiangsu High-Tech Investment Group (Govtor) on Jan, 18, 2009 in order to maintain its leading position. The CNY78 million venture capital invested by Govtor will be used for Jiangyin Alcom’s development of solar battery fittings and solar integrated system, as well as its R&D center.
Founded in Mar, 2006, the sales revenue of Jiangyin Alcom reached CNY400 million in 2008. Its key product, aluminum frame special for solar battery panel, its precision has achieved 0.02mm, meeting the international advanced requirements. In addition, its solar frame had topped in the world successively from 2007 to 2008, accounting for 15% all over the globe. Alcom also had established the first solar fitting R&D center in Jun, 2008, and had applied for over 50 patents. Meanwhile, the first production line of solar EVA adhesive film with independent intellectual property rights, which Alcom had invested CNY80 million R&D expense, had been put into trial production in the beginning of 2009.
Govtor is one of the early provincial professional venture capital organizations in China. It has led and participated 27 professional venture capital funds in recent years, the management assets has reached CNY5 billion, and the accumulative investment projects has amounted to more than 140, as well as has helped 12 companies go public in domestic and international capital market. After the cooperation with Alcom, it will help Alcom to make, adjust and perfect the long-term development strategy, adjust optimizing business combination, integrate industry chain, and assist to establish standard management system and corporate structure, bring in strategic investors and high-grade management talents, and make up reasonable plans for going public.
Tuesday, January 13, 2009
Suntech Laid Off 10%, Factories Running at 50%-60% Capacity
The Chinese solar panel maker refutes claims made by a news story reporting that the company has carried out a massive layoff.
by: Ucilia Wang
January 12, 2009
After a Chinese news report claimed Suntech Power Holdings (NYSE: STP) was planning a massive layoff, the solar panel maker on Monday said the report was inaccurate but disclosed that it did cut 10 percent of its workforce in the fourth quarter of 2008.
Economic downturn prompted the world's largest solar panel maker to chop roughly 800 people from the payrolls, said Steve Chadima, vice president of external affairs at Suntech.
The layoffs affected mostly contract factory workers, who were let go as the company reduced its production, Chadima added. Back in Novmber, Suntech trimmed its sales forecast for 2008, blaming the weak euro and credit crunch. The company has several factories in China, and the layoffs took place at the main factory near its headquarters in Wuxi.
"We were slowing down production because of this worldwide slow down in demand for modules," Chadima said.
Suntech's investor relation staff called major investors Monday trying to correct a news report by a business daily in China that appeared on Saturday and posted on Sina.com. A research firm, JLM Pacific Epoch translated the story into English and posted on its Website.
The original, Chinese version of the story, which cited a former Suntech employee, said Suntech started laying off employees in the last quarter, and the workforce reduction would reach 4,000 people, or 30 percent of the company's workforce, around now.
The story included comments from a Suntech spokesman, who didn't refute the numbers. The spokesman said the staff cut was seasonal because market demand is typically low during the winter.
But Suntech representatives said Monday the Chinese news report exaggerated the layoffs. Four thousand employees would've represented 50 percent of Suntech's workforce, Chadima said.
Suntech has no immediate plans to cut more staff, Chadima said. The company is putting off on its previous plan to hire more factory employees in 2009 until it can better determine market demand.
The Chinese news report also mentioned that some workers were asked to take a long holiday break without pay, and that the company cut executive salaries. Chadima, who initially told Greentech Media that some factory employees did take a two-week break -- instead of one-week -- without pay, called back to say that in fact the workers took paid vacation.
He added that the company didn't cut salaries for the executives. Instead, managers didn't take the year-end bonuses for 2008 "to deal with financial challenges in the next few months."
The company's factories are running at 50 percent to 60 percent capacity, which falls in line with the guidance the company has given to investors. The company recently celebrated reaching a 1-gigawatt production capacity for its solar cells and panels.
Suntech isn't alone in laying off employees. OptiSolar, based in Hayward, Calif., laid off 300 employees – or 50 percent of its staff. HelioVolt, which opened its first-ever solar panel factory last October in Austin, Texas, also has cut staff. SunEdison, a large solar power plant developer in Beltsville, Md., let go 50 to 60 people, a former SunEdison employee told Greentech Media.
Other solar companies, including Q-Cells in Germany and LDK Solar in China, have cut their 2009 sales and production forecast.
by: Ucilia Wang
January 12, 2009
After a Chinese news report claimed Suntech Power Holdings (NYSE: STP) was planning a massive layoff, the solar panel maker on Monday said the report was inaccurate but disclosed that it did cut 10 percent of its workforce in the fourth quarter of 2008.
Economic downturn prompted the world's largest solar panel maker to chop roughly 800 people from the payrolls, said Steve Chadima, vice president of external affairs at Suntech.
The layoffs affected mostly contract factory workers, who were let go as the company reduced its production, Chadima added. Back in Novmber, Suntech trimmed its sales forecast for 2008, blaming the weak euro and credit crunch. The company has several factories in China, and the layoffs took place at the main factory near its headquarters in Wuxi.
"We were slowing down production because of this worldwide slow down in demand for modules," Chadima said.
Suntech's investor relation staff called major investors Monday trying to correct a news report by a business daily in China that appeared on Saturday and posted on Sina.com. A research firm, JLM Pacific Epoch translated the story into English and posted on its Website.
The original, Chinese version of the story, which cited a former Suntech employee, said Suntech started laying off employees in the last quarter, and the workforce reduction would reach 4,000 people, or 30 percent of the company's workforce, around now.
The story included comments from a Suntech spokesman, who didn't refute the numbers. The spokesman said the staff cut was seasonal because market demand is typically low during the winter.
But Suntech representatives said Monday the Chinese news report exaggerated the layoffs. Four thousand employees would've represented 50 percent of Suntech's workforce, Chadima said.
Suntech has no immediate plans to cut more staff, Chadima said. The company is putting off on its previous plan to hire more factory employees in 2009 until it can better determine market demand.
The Chinese news report also mentioned that some workers were asked to take a long holiday break without pay, and that the company cut executive salaries. Chadima, who initially told Greentech Media that some factory employees did take a two-week break -- instead of one-week -- without pay, called back to say that in fact the workers took paid vacation.
He added that the company didn't cut salaries for the executives. Instead, managers didn't take the year-end bonuses for 2008 "to deal with financial challenges in the next few months."
The company's factories are running at 50 percent to 60 percent capacity, which falls in line with the guidance the company has given to investors. The company recently celebrated reaching a 1-gigawatt production capacity for its solar cells and panels.
Suntech isn't alone in laying off employees. OptiSolar, based in Hayward, Calif., laid off 300 employees – or 50 percent of its staff. HelioVolt, which opened its first-ever solar panel factory last October in Austin, Texas, also has cut staff. SunEdison, a large solar power plant developer in Beltsville, Md., let go 50 to 60 people, a former SunEdison employee told Greentech Media.
Other solar companies, including Q-Cells in Germany and LDK Solar in China, have cut their 2009 sales and production forecast.
Tuesday, January 6, 2009
LDK Solar Lowers Sales Outlook, Delays Factory Plan
January 5, 2009
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
LDK Solar on Monday slashed its sales and shipment estimates for the fourth quarter of 2008 and is now expecting a lackluster 2009, news that caused its stock to plunge by 15 percent.
The Chinese maker of silicon wafers, which are turned into solar cells for making solar panels, said preliminary data showed that it likely generated $425 million to $435 million for the quarter that ended in December, instead of the previously anticipated $555 million to $565 million.
LDK (NYSE: LDK) said it also shipped an estimated 245 megawatts to 255 megawatts worth of wafers during the quarter, down from the 260 megawatts to 270 megawatts.
Recession and customers who wanted to delay delivery prompted the lower sales, the company said. LDK plans to announce full fourth-quarter and 2008 financial results in late February or early March.
The revised estimates underscore how declining prices are whacking the solar industry. The company reduced revenue estimates by around 23 percent but lowered shipment by only 5 percent. Thus, prices are dropping far faster than any decline in actual demand for products.
The situation could get worse in 2009 as it completes manufacturing projects while facing declining demand.
LDK launched ambitious plans to build two factories in China for producing polysilicon, the main ingredient for making wafers, over the past year and half. The two polysilicon factories are LDK's first efforts to make polysilicon instead of relying on outside suppliers.
But LDK is having trouble bringing its first factory into full production mode, the company said Monday. The 1,000-metric ton factory was supposed to be completed and running at capacity by the end of 2008. The factory is producing polysilicon, but it isn't likely to reach full production until mid 2009.
LDK blames problems with the "optimization process" for the delay but didn't provide more details. Calls and emails to the company weren't immediately returned.
The company said the construction of its second polysilicon plant is on track. LDK expects the 15,000-metric ton factory to begin production in the second quarter of 2009.
The outlook for 2009 isn't rosy. LDK expects lower average selling prices for its products and lower wafer shipment this year.
For 2009, it expects to generate between $2.3 billion and $2.5 billion in sales. Shipment could reach between 1.57 gigawatts and 1.67 gigawatts.
The company previously thought it would bring in between $2.9 billion and $3.1 billion in sales and ship between 1.8 gigawatts and 1.85 gigawatts worth of wafers in 2009. Its customers include Q-Cells, Suntech Power Holdings and Canadian Solar.
LDK now expects to produce between 3,000 metric tons and 5,000 metric tons of polysilicon instead of 5,000 metric tons to 7,000 metric tons.
The company's annual wafer capacity would reach 2.3 gigawatts in 2009, an estimate that hasn't changed from the prior forecast.
LDK's shares dropped more than 15 percent to reach $12.61 per share in after-market trading. The company announced the lower sales and forecast after the market closed.
Sunday, January 4, 2009
China Plans World's Largest Solar Power Plant
At 1 gigawatt, the solar power plant in northwest China would be the world's biggest, but the timeline is a bit iffy at the moment. Construction starts next year.
by: Jeff St. John December 31, 2008
Two Chinese companies have proposed a massive, 1-gigawatt solar photovoltaic power plant in China's northwest, one that would be the worlds biggest if it's completed.
The China Technology Development Group Corp. (NSDQ: CTDC) and Qinghai New Energy Co. announced this week that they had formed an agreement with local Chinese officials to start the project, according to a report from research firm JL McGregor & Company.
The project in Qinghai's Qaidam Basin will start out in 2009 with a more modest initial goal of 30 megawatts at a cost of 1 billion Yuan ($146 million), and will combine crystalline silicon and thin-film solar panels, the firm reported. The timeline and projected cost of the entire 1-gigawatt project were not disclosed.
But if built, it would be almost twice the size of the largest solar photovoltaic power project announced so far, a 550-megawatt thin-film power plant to be built in San Luis Obispo, Calif. by OptiSolar to supply power to California utility Pacific Gas & Electric Co.
Hong Kong-based China Technology Development Group entered the solar market in 2007 with a focus on manufacturing tin oxide glass plates for use as substrates for amorphous silicon thin-film solar cells. In September it announced the opening of a factory expected to build enough of the plates to supply 20 megawatts to 30 megawatts of thin-film cells by 2009.
Given China's meager installations of photovoltaic solar power plants so far, China Technology Development Group and other Chinese solar companies like Suntech Power Holdings, China Sunergy and Yingli Green Energy Holding Co. have so far focused on exporting products to the rest of the world.
A Worldwatch Institute report released in May said that solar photovoltaic power projects within China remain in their infancy compared to Japan, Germany and the United States, with most of the estimated 20 megawatts of generation capacity installed in 2007 being used for remote, off-grid applications.
Earlier this month, an experimental, 166-megawatt grid-connected solar photovoltaic power project started construction in the town of Chilin in southwestern China, People's Daily Online reported. That project is expected to cost 9.1 billion Yuan ($1.3 billion).
by: Jeff St. John December 31, 2008
Two Chinese companies have proposed a massive, 1-gigawatt solar photovoltaic power plant in China's northwest, one that would be the worlds biggest if it's completed.
The China Technology Development Group Corp. (NSDQ: CTDC) and Qinghai New Energy Co. announced this week that they had formed an agreement with local Chinese officials to start the project, according to a report from research firm JL McGregor & Company.
The project in Qinghai's Qaidam Basin will start out in 2009 with a more modest initial goal of 30 megawatts at a cost of 1 billion Yuan ($146 million), and will combine crystalline silicon and thin-film solar panels, the firm reported. The timeline and projected cost of the entire 1-gigawatt project were not disclosed.
But if built, it would be almost twice the size of the largest solar photovoltaic power project announced so far, a 550-megawatt thin-film power plant to be built in San Luis Obispo, Calif. by OptiSolar to supply power to California utility Pacific Gas & Electric Co.
Hong Kong-based China Technology Development Group entered the solar market in 2007 with a focus on manufacturing tin oxide glass plates for use as substrates for amorphous silicon thin-film solar cells. In September it announced the opening of a factory expected to build enough of the plates to supply 20 megawatts to 30 megawatts of thin-film cells by 2009.
Given China's meager installations of photovoltaic solar power plants so far, China Technology Development Group and other Chinese solar companies like Suntech Power Holdings, China Sunergy and Yingli Green Energy Holding Co. have so far focused on exporting products to the rest of the world.
A Worldwatch Institute report released in May said that solar photovoltaic power projects within China remain in their infancy compared to Japan, Germany and the United States, with most of the estimated 20 megawatts of generation capacity installed in 2007 being used for remote, off-grid applications.
Earlier this month, an experimental, 166-megawatt grid-connected solar photovoltaic power project started construction in the town of Chilin in southwestern China, People's Daily Online reported. That project is expected to cost 9.1 billion Yuan ($1.3 billion).
Thursday, December 25, 2008
Hongkong Sheng Rui invested in thin film solar panel production project in Zhenjiang, China
2008 December 24th, Hongkong Sheng Rui Solar Technology Company and Zhenjiang New Zone Ecnomic Development Company signed cooperation agreement to build thin film solar panel production project in Zhenjiang.
The first phase project will cost about USD 36 million and the thin film solar panel production capacity will reach 96MW by the end of 2010, and reach 120MW by the end of 2011.
The first phase project will cost about USD 36 million and the thin film solar panel production capacity will reach 96MW by the end of 2010, and reach 120MW by the end of 2011.
Wednesday, December 10, 2008
Suntech Power: Now a Takeover Target
December 09, 2008
The United Nations Climate Change Conference is being held in Poland this week. Representatives from the top four Photovoltaic (PV) makers gathered in Poznan to propose the rapid implementation and expansion of policies designed to support the growth of the solar industry and the global adoption of solar technology as a major contributor to greenhouse gas (GHG) reduction in support of global climate goals.
As the top two solar companies, Suntech Power and First Solar dominate the European and U.S. markets respectively. According to Suntech CEO Dr. Zhengrong Shi, the company is dedicated to reducing the cost of solar electricity to grid parity through increasing economies of scale, improving efficient utilization of raw materials such as silicon, and developing more advanced technology and new applications. While no solar company has achieved grid parity, Suntech is leading the way. The company is also developing a new thin film technology with 50% efficiency.
Despite all of these positive developments, STP's stock price has been down as much as 90% from its 52-week high because of hedge fund redemptions in the last few months. Investors have started to realize its true value recently but it is still very much undervalued.
Recently, many solar companies have rolled out expansion plans for the coming years. For example, Sharp plans to invest $2.6B in Italy in a joint venture to tap growing demand of solar panels. Suntech power is also entering the U.S. solar market through acquiring EI Solutions, and will triple US sales by 2009. What makes STP extremely attractive is that China has set ambitious, long-term national goals that have helped to create a backdrop for a growing renewable energy industry such as a national renewable energy standard of 15% by 2020 and a commitment to invest US$180 billion in renewable energy by 2020.
With STP at such a low price, two companies might like to become bidders for Suntech. The first one is Sharp. Sharp has an ambitious plan to quickly reach the European and Chinese solar markets - acquiring Suntech provides a shortcut for the company to do this.
The second company that has been named in rumors is First Solar. FSLR mainly sells panels in the U.S. and Europe and a takeover of STP will give the company direct entry into the Asian market. A call to First Solar has not been returned. It is believed that Suntech will not consider any bid below $30 per share as the industry becomes very solar friendly going into 2009.
The United Nations Climate Change Conference is being held in Poland this week. Representatives from the top four Photovoltaic (PV) makers gathered in Poznan to propose the rapid implementation and expansion of policies designed to support the growth of the solar industry and the global adoption of solar technology as a major contributor to greenhouse gas (GHG) reduction in support of global climate goals.
As the top two solar companies, Suntech Power and First Solar dominate the European and U.S. markets respectively. According to Suntech CEO Dr. Zhengrong Shi, the company is dedicated to reducing the cost of solar electricity to grid parity through increasing economies of scale, improving efficient utilization of raw materials such as silicon, and developing more advanced technology and new applications. While no solar company has achieved grid parity, Suntech is leading the way. The company is also developing a new thin film technology with 50% efficiency.
Despite all of these positive developments, STP's stock price has been down as much as 90% from its 52-week high because of hedge fund redemptions in the last few months. Investors have started to realize its true value recently but it is still very much undervalued.
Recently, many solar companies have rolled out expansion plans for the coming years. For example, Sharp plans to invest $2.6B in Italy in a joint venture to tap growing demand of solar panels. Suntech power is also entering the U.S. solar market through acquiring EI Solutions, and will triple US sales by 2009. What makes STP extremely attractive is that China has set ambitious, long-term national goals that have helped to create a backdrop for a growing renewable energy industry such as a national renewable energy standard of 15% by 2020 and a commitment to invest US$180 billion in renewable energy by 2020.
With STP at such a low price, two companies might like to become bidders for Suntech. The first one is Sharp. Sharp has an ambitious plan to quickly reach the European and Chinese solar markets - acquiring Suntech provides a shortcut for the company to do this.
The second company that has been named in rumors is First Solar. FSLR mainly sells panels in the U.S. and Europe and a takeover of STP will give the company direct entry into the Asian market. A call to First Solar has not been returned. It is believed that Suntech will not consider any bid below $30 per share as the industry becomes very solar friendly going into 2009.
Thursday, December 4, 2008
Solar-Fabrik AG signs agreement with JA Solar Holdings Co., Ltd. for the supply of 30 MWp of solar cells
Freiburg (euro adhoc) - Freiburg, 03/12/2008. Solar-Fabrik AG (ISIN: DE0006614712) has entered into an agreement with JA Solar Holdings Co., Ltd of China for the supply of 30 megawatts of solar cells. The agreement initially has a term of one year, though both firms have expressed an interest in extending it.
The agreement specifies a supply of five-inch monocrystalline wafers. However, the contractual volume is to be expanded to include the supply of six-inch monocrystalline and polycrystalline cells. "We are pleased to add JA Solar to our list of high-quality partners for the supply of raw materials", commented Christoph Paradeis, CEO at Solar-Fabrik AG. "Tests conducted in advance of the agreement confirmed the high quality of the firm's solar cells. They fulfill Solar-Fabrik's quality requirements. With JA Solar we have added yet another crucial strategic partner to our team of suppliers that will help us successfully tackle the future challenges of the solar market."
Based in China, JA Solar is a manufacturer of high-performance solar cells and is considered a reliable and quality supplier that has exhibited impressive growth rates and currently has a capacity exceeding 500 MWp.
"We are pleased to be able to work with Solar-Fabrik, a pioneer and quality leader in the international solar industry", explains Ray Wilson, Vice President Sales & Marketing of JA Solar. "These new business relations with the Solar-Fabrik Group strengthen our customer base on the global solar market."
By forming a partnership with JA Solar, Solar-Fabrik has found a partner that can not only keep up with the Group's fast growth on this highly competitive market, but also offers a lot of value for the money. The agreement will allow Solar-Fabrik to expand its market share. In fiscal 2009, Solar-Fabrik plans to ramp up sales of solar panels by at least 70%.
The agreement specifies a supply of five-inch monocrystalline wafers. However, the contractual volume is to be expanded to include the supply of six-inch monocrystalline and polycrystalline cells. "We are pleased to add JA Solar to our list of high-quality partners for the supply of raw materials", commented Christoph Paradeis, CEO at Solar-Fabrik AG. "Tests conducted in advance of the agreement confirmed the high quality of the firm's solar cells. They fulfill Solar-Fabrik's quality requirements. With JA Solar we have added yet another crucial strategic partner to our team of suppliers that will help us successfully tackle the future challenges of the solar market."
Based in China, JA Solar is a manufacturer of high-performance solar cells and is considered a reliable and quality supplier that has exhibited impressive growth rates and currently has a capacity exceeding 500 MWp.
"We are pleased to be able to work with Solar-Fabrik, a pioneer and quality leader in the international solar industry", explains Ray Wilson, Vice President Sales & Marketing of JA Solar. "These new business relations with the Solar-Fabrik Group strengthen our customer base on the global solar market."
By forming a partnership with JA Solar, Solar-Fabrik has found a partner that can not only keep up with the Group's fast growth on this highly competitive market, but also offers a lot of value for the money. The agreement will allow Solar-Fabrik to expand its market share. In fiscal 2009, Solar-Fabrik plans to ramp up sales of solar panels by at least 70%.
Monday, December 1, 2008
1,000MW solar cell project began construction in Xi'an, China
China Power Investment Group's 1,000 MW solar cell production project started construction on November 29th 2008.
This will be the biggest solar cell and solar panel production project in North West China, the total investment will be about 5 billion RMB, and the project will be completed in 2015.
This will be the biggest solar cell and solar panel production project in North West China, the total investment will be about 5 billion RMB, and the project will be completed in 2015.
Friday, November 28, 2008
Sichuan build its first amorphous silicon off-grid PV power station
November 19th 2008, amorphous silicon solar panels made by Sinocome was shipped from Beijing to Daying, Sichuan. This indicates that the first amorphous silicon off-grid PV power station in Sichuan will begin to operate soon.
The total investment will be 2 billion RMB, and the power station will generate 365,000,000 KWH electricity annually. And the first phase project will start operation in February 2009.
The total investment will be 2 billion RMB, and the power station will generate 365,000,000 KWH electricity annually. And the first phase project will start operation in February 2009.
Tuesday, November 25, 2008
BP Solar placed many orders to Chinese manufacturers
The solar PV industry is experiencing a harsh winter in China, and many Chinese solar wafer, solar cell and solar panel manufacturers have reduced their production, and even some small manufacturers have shut down their factories. The PV industry crisis is caused by the weak international demand and product price shrinking.
But some source disclosed that many Chinese PV manufacturers, including Renesola and Ningbo Solar, are producing products for BP Solar now, and BP Solar has placed some big orders to them, this will keep them quite busy for some time.
But some source disclosed that many Chinese PV manufacturers, including Renesola and Ningbo Solar, are producing products for BP Solar now, and BP Solar has placed some big orders to them, this will keep them quite busy for some time.
Friday, November 21, 2008
Suntech Reports Third Quarter 2008 Financial Results
SAN FRANCISCO and WUXI, China, NOV 20, 2008 /PRNewswire via COMTEX/ -- Suntech Power Holdings Co., Ltd. the world's largest photovoltaic (PV) module manufacturer, today announced financial results for the third quarter ended September 30, 2008.
Third Quarter Highlights(1)
-- Third quarter 2008 total net revenues grew 53.7% year-over-year to $594.4 million.
-- On a consolidated basis, GAAP gross margin increased to 21.6% for the third quarter 2008 compared to 20.7% for the third quarter 2007. Non-GAAP(2) gross margin reached 21.8% for the third quarter 2008, compared to 21.4% for the third quarter 2007.
-- GAAP net income for the third quarter was $55.9 million or $0.33 per diluted American Depository Share (ADS). On a non-GAAP basis, Suntech's net income for the third quarter was $60.3 million or $0.35 per diluted ADS. Each ADS represents one ordinary share.
-- Suntech's PV cell production capacity was 750MW at the end of the third quarter 2008.
-- Due to the depreciation of the Euro versus the U.S. dollar combined with the impact of tighter credit markets, Suntech has revised its full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a new expected range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW.
"Our third quarter performance was driven by healthy demand for our solar products, resulting in strong top-line growth that exceeded the high end of our guidance," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "However, the rapid weakening of the Euro relative to the USD over the past two months combined with the unstable credit markets has created a challenging environment in the fourth quarter of 2008. This has resulted in a faster than expected sequential decline in sales prices and the deferment of some customer orders, which will significantly impact our profitability in the fourth quarter of 2008."
"Due to these near-term challenges, we have been implementing a range of measures to prudently manage this temporary downturn. These include the minimization of cash outlays, renegotiation of high priced, short-term silicon contracts, optimization of our supply chain and production, and the enhancement of currency risk management. We believe that these steps will enable us to weather the short term market disturbances and we expect our profitability will steadily improve in 2009 as multiple long term, low cost silicon contracts initiate delivery."
''In addition, we believe that the industry recalibration will benefit Suntech as we expect a flight to quality solar companies that are positioned to be long-term leaders in the solar industry," continued Dr. Shi. ''Suntech's exceptional project history, dedication to innovation and focus on producing premium quality solar products differentiate Suntech's products and brand. Moreover, our localized customer service, broad product range and manufacturing scale provide a stable base to serve our customers' long-term needs. We are confident that our customers recognize the value in partnering with Suntech, and we expect to improve our market position in 2009.''
"Suntech's goal is to drive down the cost of solar to grid parity, and these macroeconomic changes should accelerate the reduction in silicon costs and sales prices and stimulate demand. In addition, the outlook for 2009 demand is encouraging. Although customers have deferred some orders in the fourth quarter, many are committing to increased volumes for 2009 indicative of customers' confidence that the financing environment will improve. We have already received orders for over 600MW of PV products for 2009 from our European customers and are pursuing a growing pipeline of additional orders."
Recent Business Highlights
Acquisitions and Joint Venture Agreements
-- Suntech acquired EI Solutions, a leading California-based commercial solar system integration company, to provide complete solar solutions to commercial, utility and government customers in the U.S.. Renamed Suntech Energy Solutions, it has designed and implemented solar
projects for many leading US companies, including Google, Disney, Sony Pictures, The North Face, and Puget Sound Energy.
-- Suntech established a joint venture with MMA Renewable Resources to create Gemini Solar Development Company (Gemini Solar), to develop and finance photovoltaic projects 10MW and larger. Gemini Solar will provide an end-to-end solution to address the growing demand for large-scale solar projects.
Suntech Energy Solutions Projects
-- Suntech Energy Solutions recently substantially completed numerous installations including:
-- A distribution center for The North Face in Visalia, CA which included a 1MW installation of Suntech modules on tracking systems in a 5 acre retention pond abutting the facility.
-- A 250kW rooftop installation for a carport at Caltech in Pasadena CA.
-- A 250kW ground mounted tracking system for the luxury eco-resort Post Ranch Inn, in Big Sur, CA.
-- A 100kW carport installation for The Venetian Hotel in Las Vegas, NV.
Capital and Credit Facilities
-- Suntech had cash and cash equivalents of $394.6 million, restricted cash of $124.1 million and short term investments of $145.6 million as of September 30, 2008. In addition, Suntech had value-added tax recoverable of $201.8 million at the end of September 30, 2008 of which approximately $126 million has been approved for refund by the P.R.C. government.
-- Suntech had approximately $1.7 billion of approved credit lines to be used for fixed asset purchase, working capital or trade financing as of September 30, 2008. Of these credit facilities approximately $1.1 billion had been drawn down as of September 30, 2008. During the fourth
quarter, Suntech has secured a further $600 million of credit facilities, which can be utilized for fixed asset purchase, working capital or trade financing. Suntech expects that its capital will be
sufficient to cover its capital expenditures in 2008 and 2009, while maintaining adequate working capital to support its operations.
Technology
-- Suntech is on track to expand Pluto PV cell production capacity from 10MW to 30MW by the end of 2008. During the temporary period of downturn, Suntech intends to accelerate retrofitting of existing lines to Pluto technology and achieve 100MW of Pluto PV cell
capacity by the end of the first quarter 2009.
Collaboration on Climate Change
-- Suntech joined The Climate Group, a global independent organization dedicated to accelerating action on climate change. Suntech is the first and only energy company to join The Climate Group. The Climate Group is an independent, nonprofit organization that works
with government and business leaders to accelerate the transition to a low-carbon economy.
Third Quarter 2008 Results
Non-GAAP Non-GAAP
Net Revenues Gross Profit Gross Margin
(in $ millions) % of Net Revenues (in $millions) (%)
Standard PV Modules $523.1 88.0% $122.2 23.4%
Others $71.3 12.0% $7.5 10.5%
Total Net Revenues $594.4 100% $129.7 21.8%
Total net revenues for the third quarter of 2008 were $594.4 million, representing an increase of 53.7% from the corresponding period in 2007.
Non-GAAP gross profit for the third quarter of 2008 was $129.7 million, an increase of 56.6% year-over-year. Non-GAAP gross margin for the Company's standard PV module business was 23.4% and non-GAAP consolidated gross margin was 21.8%. Gross margin decreased from the second quarter of 2008 primarily due to a decrease in the average selling price resulting from the depreciation of the Euro versus the U.S. dollar and a slight increase in silicon wafer costs.
Non-GAAP operating expenses in the third quarter of 2008 totaled $37.1 million or 6.2% of total net revenues. The sequential increase in operating expenses was primarily due to increased spending on research and development of the Pluto technology.
Non-GAAP income from operations for the third quarter of 2008 was $92.6 million, an increase of 43.1% year-over-year. Non-GAAP operating margin was 15.6%.
Net interest expense was $7.9 million in the third quarter of 2008 compared to net interest expense of $5.2 million in the second quarter of 2008. The sequential increase in net interest expenses was primarily due to increased bank borrowing balances.
Foreign currency exchange loss was $16.6 million in the third quarter of 2008 compared to a foreign currency exchange gain of $2.5 million in the second quarter of 2008. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the revaluation of some assets, which were impacted by the depreciation of the Euro against the U.S. dollar, and the revaluation of some liabilities, which were impacted by the appreciation of the CNY against the U.S. dollar.
Net other expenses decreased from $6.3 million in the second quarter of 2008 to $3.2 million in the third quarter of 2008. The decrease was mainly due to the reduced mark-to-market valuation losses associated with foreign currency derivative instruments.
Non-GAAP net income for the third quarter of 2008 was $60.3 million, or $0.35 per non-GAAP diluted ADS, compared to non-GAAP net income of $61.2 million, or $0.36 per non-GAAP diluted ADS in the third quarter of 2007.
On a GAAP basis, for the third quarter of 2008 gross profit was $128.3 million, an increase of 60.4% year-over-year. Gross margin for the standard PV module business was 23.1% and consolidated gross margin was 21.6% for the third quarter of 2008.
On a GAAP basis, operating expenses for the third quarter of 2008 were $41.3 million or 6.9% of total net revenues. Income from operations was $87.1 million for the third quarter of 2008, an increase of 52.0% year-over-year. Operating margin was 14.6%. Net income increased 5.0% year-over-year to $55.9 million, or $0.33 per diluted ADS.
In the third quarter of 2008, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $102.4 million and depreciation and amortization expenses totaled $10.2 million.
As of September 30, 2008, Suntech had cash and cash equivalents of $394.6 million, compared to $605.2 million as of June 30, 2008. The decrease in cash and cash equivalents was mainly due to capital expenditures related to capacity expansions and prepayments to suppliers. This was partially offset by an increase of bank borrowings.
Value-added tax recoverable totaled $201.8 million as of September 30, 2008, compared to $143.0 million as of June 30, 2008. The increase was mainly due to the long clearance process required by local regulation. Approximately $126 million value-added tax recoverable has been approved for refund by the P.R.C. government of which approximately $15 million is expected to be refunded in the fourth quarter of 2008.
Inventory totaled $247.9 million as of September 30, 2008 compared to $182.6 million as of June 30, 2008. The increase in inventory was partially due to the late receipt of raw materials from some silicon suppliers due to storm weather in the U.S. at the end of the third quarter.
Accounts receivable increased from $218.9 million as of June 30, 2008 to $232.8 million as of September 30, 2008. Days sales outstanding were 36 days in the third quarter of 2008 compared to 41 days in the second quarter of 2008.
Business Outlook
During the quarter ended September 30, 2008 the average value of the U.S. dollar was $1.50 to the Euro. Assuming an exchange rate of $1.28 U.S. dollars to the Euro in the fourth quarter of 2008, the Euro will have depreciated approximately 15% against the U.S. dollar sequentially resulting in an approximate $45 million impact on fourth quarter 2008 gross profit and approximately 12 percentage point impact on gross margin.
Based on current operating conditions and assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, Suntech expects revenues for the fourth quarter of 2008 to be in the range of $345 million to $360 million. The sequential decline in revenues primarily reflects the depreciation of the Euro versus the U.S. dollar, the deferment of some customer orders due to delays in project financing and the seasonality impact due to winter in Northern Europe.
Assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, GAAP consolidated gross margin for the fourth quarter 2008 is expected to be marginally positive or breakeven. The sequential decline in gross margin primarily reflects the decline in product sales prices due to the rapid depreciation of the Euro versus the U.S. dollar, the negative impact of high cost inventories from the third quarter of 2008, and the high cost of raw materials purchased in October 2008.
Due to the abnormal depreciation of the Euro versus the U.S. dollar and the tighter credit markets, Suntech has reduced full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW. Suntech remains on target to reach 1GW of installed PV cell production capacity by year-end 2008.
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 has improved. Suntech expects to reduce capital expenditures to approximately $80 million in 2009 from approximately $300 million in 2008. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency, Pluto technology.
New Senior Management Hires and Promotions
Mr. Steven Chan, Suntech's Chief Strategy Officer, has assumed the additional role of President, Global Sales/Marketing. Mr. Chan, who is also responsible for the Company's business development and investor relations functions, joined Suntech in 2006. Originally based in the Company's Wuxi, China headquarters, Mr. Chan moved to San Francisco last year to open its U.S. headquarters and to focus on expanding its global sales and marketing initiatives.
Mr. Roger Ye, Suntech's Sales Director, has been promoted to Vice President of Global Sales. Mr. Ye joined Suntech in 2006 and has since led Suntech's global sales efforts. Prior to joining Suntech, Mr. Ye spent eight years with Siemens Limited China where he progressed through a number of sales management roles, ultimately being promoted to Sales Director. He earned a Masters degree from Shanghai Jiaotong University majoring in Photovoltaics.
Mr. Mauro Sgherri joined Suntech to assume the role of Managing Director, Italy, based in Milan, with responsibility for all sales and business development activities in Italy. Prior to joining Suntech, Mr. Sgherri was a consultant to the Board of Directors of Sharp Italy for the establishment of their solar division, and in establishing relationships with leading systems integrators and customers. He brings more than 30 years of business experience in sales management, product management and marketing strategy. Mr. Sgherri holds a degree in Business Management.
Mr. Thilo Kinkel has joined Suntech to assume the role of Director of Sales, Central Europe. Mr. Kinkel will be based in Frankfurt, Germany. Prior to joining Suntech, Mr. Kinkel was Sales Coordinator and Key Account Manager for Schott Solar GmbH, a photovoltaic manufacturer in Germany. He brings over 9 years of experience in the sales and development of markets for photovoltaics and glass. Mr. Kinkel attended the University of Applied Science in Giessen-Friedberg where he studied Industrial Engineering.
Mr. Bert van Kampen has joined Suntech in the role of Financial Controller, Suntech Europe, based in Suntech's recently opened office in Switzerland. Mr. Van Kampen was most recently Financial Director of Makhteshim-Agan Industries in Switzerland, where he had responsibility for accounting, reporting, budgeting, cash management, treasury and tax, as well as human resources, legal and IT. He brings more than 20 years of experience in financial management to Suntech, as well as implementation of internal control procedures. Mr. van Kampen attended the Economic College (HEAO-BE).
Corporate Governance
In November 2007, the Company revised its Corporate Governance Guidelines to reduce the minimum size of the Audit Committee from three members to two members. Currently, Mr. Julian Worley and Mr. Jason Maynard, both independent directors, serve on the Audit Committee.
Third Quarter Highlights(1)
-- Third quarter 2008 total net revenues grew 53.7% year-over-year to $594.4 million.
-- On a consolidated basis, GAAP gross margin increased to 21.6% for the third quarter 2008 compared to 20.7% for the third quarter 2007. Non-GAAP(2) gross margin reached 21.8% for the third quarter 2008, compared to 21.4% for the third quarter 2007.
-- GAAP net income for the third quarter was $55.9 million or $0.33 per diluted American Depository Share (ADS). On a non-GAAP basis, Suntech's net income for the third quarter was $60.3 million or $0.35 per diluted ADS. Each ADS represents one ordinary share.
-- Suntech's PV cell production capacity was 750MW at the end of the third quarter 2008.
-- Due to the depreciation of the Euro versus the U.S. dollar combined with the impact of tighter credit markets, Suntech has revised its full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a new expected range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW.
"Our third quarter performance was driven by healthy demand for our solar products, resulting in strong top-line growth that exceeded the high end of our guidance," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "However, the rapid weakening of the Euro relative to the USD over the past two months combined with the unstable credit markets has created a challenging environment in the fourth quarter of 2008. This has resulted in a faster than expected sequential decline in sales prices and the deferment of some customer orders, which will significantly impact our profitability in the fourth quarter of 2008."
"Due to these near-term challenges, we have been implementing a range of measures to prudently manage this temporary downturn. These include the minimization of cash outlays, renegotiation of high priced, short-term silicon contracts, optimization of our supply chain and production, and the enhancement of currency risk management. We believe that these steps will enable us to weather the short term market disturbances and we expect our profitability will steadily improve in 2009 as multiple long term, low cost silicon contracts initiate delivery."
''In addition, we believe that the industry recalibration will benefit Suntech as we expect a flight to quality solar companies that are positioned to be long-term leaders in the solar industry," continued Dr. Shi. ''Suntech's exceptional project history, dedication to innovation and focus on producing premium quality solar products differentiate Suntech's products and brand. Moreover, our localized customer service, broad product range and manufacturing scale provide a stable base to serve our customers' long-term needs. We are confident that our customers recognize the value in partnering with Suntech, and we expect to improve our market position in 2009.''
"Suntech's goal is to drive down the cost of solar to grid parity, and these macroeconomic changes should accelerate the reduction in silicon costs and sales prices and stimulate demand. In addition, the outlook for 2009 demand is encouraging. Although customers have deferred some orders in the fourth quarter, many are committing to increased volumes for 2009 indicative of customers' confidence that the financing environment will improve. We have already received orders for over 600MW of PV products for 2009 from our European customers and are pursuing a growing pipeline of additional orders."
Recent Business Highlights
Acquisitions and Joint Venture Agreements
-- Suntech acquired EI Solutions, a leading California-based commercial solar system integration company, to provide complete solar solutions to commercial, utility and government customers in the U.S.. Renamed Suntech Energy Solutions, it has designed and implemented solar
projects for many leading US companies, including Google, Disney, Sony Pictures, The North Face, and Puget Sound Energy.
-- Suntech established a joint venture with MMA Renewable Resources to create Gemini Solar Development Company (Gemini Solar), to develop and finance photovoltaic projects 10MW and larger. Gemini Solar will provide an end-to-end solution to address the growing demand for large-scale solar projects.
Suntech Energy Solutions Projects
-- Suntech Energy Solutions recently substantially completed numerous installations including:
-- A distribution center for The North Face in Visalia, CA which included a 1MW installation of Suntech modules on tracking systems in a 5 acre retention pond abutting the facility.
-- A 250kW rooftop installation for a carport at Caltech in Pasadena CA.
-- A 250kW ground mounted tracking system for the luxury eco-resort Post Ranch Inn, in Big Sur, CA.
-- A 100kW carport installation for The Venetian Hotel in Las Vegas, NV.
Capital and Credit Facilities
-- Suntech had cash and cash equivalents of $394.6 million, restricted cash of $124.1 million and short term investments of $145.6 million as of September 30, 2008. In addition, Suntech had value-added tax recoverable of $201.8 million at the end of September 30, 2008 of which approximately $126 million has been approved for refund by the P.R.C. government.
-- Suntech had approximately $1.7 billion of approved credit lines to be used for fixed asset purchase, working capital or trade financing as of September 30, 2008. Of these credit facilities approximately $1.1 billion had been drawn down as of September 30, 2008. During the fourth
quarter, Suntech has secured a further $600 million of credit facilities, which can be utilized for fixed asset purchase, working capital or trade financing. Suntech expects that its capital will be
sufficient to cover its capital expenditures in 2008 and 2009, while maintaining adequate working capital to support its operations.
Technology
-- Suntech is on track to expand Pluto PV cell production capacity from 10MW to 30MW by the end of 2008. During the temporary period of downturn, Suntech intends to accelerate retrofitting of existing lines to Pluto technology and achieve 100MW of Pluto PV cell
capacity by the end of the first quarter 2009.
Collaboration on Climate Change
-- Suntech joined The Climate Group, a global independent organization dedicated to accelerating action on climate change. Suntech is the first and only energy company to join The Climate Group. The Climate Group is an independent, nonprofit organization that works
with government and business leaders to accelerate the transition to a low-carbon economy.
Third Quarter 2008 Results
Non-GAAP Non-GAAP
Net Revenues Gross Profit Gross Margin
(in $ millions) % of Net Revenues (in $millions) (%)
Standard PV Modules $523.1 88.0% $122.2 23.4%
Others $71.3 12.0% $7.5 10.5%
Total Net Revenues $594.4 100% $129.7 21.8%
Total net revenues for the third quarter of 2008 were $594.4 million, representing an increase of 53.7% from the corresponding period in 2007.
Non-GAAP gross profit for the third quarter of 2008 was $129.7 million, an increase of 56.6% year-over-year. Non-GAAP gross margin for the Company's standard PV module business was 23.4% and non-GAAP consolidated gross margin was 21.8%. Gross margin decreased from the second quarter of 2008 primarily due to a decrease in the average selling price resulting from the depreciation of the Euro versus the U.S. dollar and a slight increase in silicon wafer costs.
Non-GAAP operating expenses in the third quarter of 2008 totaled $37.1 million or 6.2% of total net revenues. The sequential increase in operating expenses was primarily due to increased spending on research and development of the Pluto technology.
Non-GAAP income from operations for the third quarter of 2008 was $92.6 million, an increase of 43.1% year-over-year. Non-GAAP operating margin was 15.6%.
Net interest expense was $7.9 million in the third quarter of 2008 compared to net interest expense of $5.2 million in the second quarter of 2008. The sequential increase in net interest expenses was primarily due to increased bank borrowing balances.
Foreign currency exchange loss was $16.6 million in the third quarter of 2008 compared to a foreign currency exchange gain of $2.5 million in the second quarter of 2008. The foreign currency exchange loss in the third quarter of 2008 was primarily due to the revaluation of some assets, which were impacted by the depreciation of the Euro against the U.S. dollar, and the revaluation of some liabilities, which were impacted by the appreciation of the CNY against the U.S. dollar.
Net other expenses decreased from $6.3 million in the second quarter of 2008 to $3.2 million in the third quarter of 2008. The decrease was mainly due to the reduced mark-to-market valuation losses associated with foreign currency derivative instruments.
Non-GAAP net income for the third quarter of 2008 was $60.3 million, or $0.35 per non-GAAP diluted ADS, compared to non-GAAP net income of $61.2 million, or $0.36 per non-GAAP diluted ADS in the third quarter of 2007.
On a GAAP basis, for the third quarter of 2008 gross profit was $128.3 million, an increase of 60.4% year-over-year. Gross margin for the standard PV module business was 23.1% and consolidated gross margin was 21.6% for the third quarter of 2008.
On a GAAP basis, operating expenses for the third quarter of 2008 were $41.3 million or 6.9% of total net revenues. Income from operations was $87.1 million for the third quarter of 2008, an increase of 52.0% year-over-year. Operating margin was 14.6%. Net income increased 5.0% year-over-year to $55.9 million, or $0.33 per diluted ADS.
In the third quarter of 2008, capital expenditures, which were primarily related to production capacity expansion and the construction of Suntech's new production facilities, totaled $102.4 million and depreciation and amortization expenses totaled $10.2 million.
As of September 30, 2008, Suntech had cash and cash equivalents of $394.6 million, compared to $605.2 million as of June 30, 2008. The decrease in cash and cash equivalents was mainly due to capital expenditures related to capacity expansions and prepayments to suppliers. This was partially offset by an increase of bank borrowings.
Value-added tax recoverable totaled $201.8 million as of September 30, 2008, compared to $143.0 million as of June 30, 2008. The increase was mainly due to the long clearance process required by local regulation. Approximately $126 million value-added tax recoverable has been approved for refund by the P.R.C. government of which approximately $15 million is expected to be refunded in the fourth quarter of 2008.
Inventory totaled $247.9 million as of September 30, 2008 compared to $182.6 million as of June 30, 2008. The increase in inventory was partially due to the late receipt of raw materials from some silicon suppliers due to storm weather in the U.S. at the end of the third quarter.
Accounts receivable increased from $218.9 million as of June 30, 2008 to $232.8 million as of September 30, 2008. Days sales outstanding were 36 days in the third quarter of 2008 compared to 41 days in the second quarter of 2008.
Business Outlook
During the quarter ended September 30, 2008 the average value of the U.S. dollar was $1.50 to the Euro. Assuming an exchange rate of $1.28 U.S. dollars to the Euro in the fourth quarter of 2008, the Euro will have depreciated approximately 15% against the U.S. dollar sequentially resulting in an approximate $45 million impact on fourth quarter 2008 gross profit and approximately 12 percentage point impact on gross margin.
Based on current operating conditions and assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, Suntech expects revenues for the fourth quarter of 2008 to be in the range of $345 million to $360 million. The sequential decline in revenues primarily reflects the depreciation of the Euro versus the U.S. dollar, the deferment of some customer orders due to delays in project financing and the seasonality impact due to winter in Northern Europe.
Assuming an exchange rate of $1.28 U.S. dollars to the Euro for the fourth quarter, GAAP consolidated gross margin for the fourth quarter 2008 is expected to be marginally positive or breakeven. The sequential decline in gross margin primarily reflects the decline in product sales prices due to the rapid depreciation of the Euro versus the U.S. dollar, the negative impact of high cost inventories from the third quarter of 2008, and the high cost of raw materials purchased in October 2008.
Due to the abnormal depreciation of the Euro versus the U.S. dollar and the tighter credit markets, Suntech has reduced full year 2008 revenue guidance from a range of $2.05 billion to $2.15 billion to a range of $1.85 billion to $1.87 billion. Suntech has revised its full year 2008 PV product shipment target from 550MW to approximately 490MW. Suntech remains on target to reach 1GW of installed PV cell production capacity by year-end 2008.
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 has improved. Suntech expects to reduce capital expenditures to approximately $80 million in 2009 from approximately $300 million in 2008. The majority of 2009 capital expenditures will be utilized to retrofit existing production capacity to the high efficiency, Pluto technology.
New Senior Management Hires and Promotions
Mr. Steven Chan, Suntech's Chief Strategy Officer, has assumed the additional role of President, Global Sales/Marketing. Mr. Chan, who is also responsible for the Company's business development and investor relations functions, joined Suntech in 2006. Originally based in the Company's Wuxi, China headquarters, Mr. Chan moved to San Francisco last year to open its U.S. headquarters and to focus on expanding its global sales and marketing initiatives.
Mr. Roger Ye, Suntech's Sales Director, has been promoted to Vice President of Global Sales. Mr. Ye joined Suntech in 2006 and has since led Suntech's global sales efforts. Prior to joining Suntech, Mr. Ye spent eight years with Siemens Limited China where he progressed through a number of sales management roles, ultimately being promoted to Sales Director. He earned a Masters degree from Shanghai Jiaotong University majoring in Photovoltaics.
Mr. Mauro Sgherri joined Suntech to assume the role of Managing Director, Italy, based in Milan, with responsibility for all sales and business development activities in Italy. Prior to joining Suntech, Mr. Sgherri was a consultant to the Board of Directors of Sharp Italy for the establishment of their solar division, and in establishing relationships with leading systems integrators and customers. He brings more than 30 years of business experience in sales management, product management and marketing strategy. Mr. Sgherri holds a degree in Business Management.
Mr. Thilo Kinkel has joined Suntech to assume the role of Director of Sales, Central Europe. Mr. Kinkel will be based in Frankfurt, Germany. Prior to joining Suntech, Mr. Kinkel was Sales Coordinator and Key Account Manager for Schott Solar GmbH, a photovoltaic manufacturer in Germany. He brings over 9 years of experience in the sales and development of markets for photovoltaics and glass. Mr. Kinkel attended the University of Applied Science in Giessen-Friedberg where he studied Industrial Engineering.
Mr. Bert van Kampen has joined Suntech in the role of Financial Controller, Suntech Europe, based in Suntech's recently opened office in Switzerland. Mr. Van Kampen was most recently Financial Director of Makhteshim-Agan Industries in Switzerland, where he had responsibility for accounting, reporting, budgeting, cash management, treasury and tax, as well as human resources, legal and IT. He brings more than 20 years of experience in financial management to Suntech, as well as implementation of internal control procedures. Mr. van Kampen attended the Economic College (HEAO-BE).
Corporate Governance
In November 2007, the Company revised its Corporate Governance Guidelines to reduce the minimum size of the Audit Committee from three members to two members. Currently, Mr. Julian Worley and Mr. Jason Maynard, both independent directors, serve on the Audit Committee.
Friday, November 14, 2008
JA Solar cuts forecast, sees solar "panic"
Wed Nov 12, 2008
By Matt Daily
NEW YORK (Reuters) - Chinese solar cell maker JA Solar Holdings Co Ltd said on Wednesday the global economic slump had triggered a "panic" in the solar market, prompting it to slash its sales forecasts and sending its shares down more than 30 percent.
Sales of solar cells and panels have risen sharply in recent quarters as companies such as JA Solar ramped up production of the clean power source, but the global economic slowdown has caused that growth to slow, leading to a supply glut.
"At this moment the market reaction has been panic," Samuel Yang, chief executive officer, told a conference call.
The company, which posted a quarterly loss from its ties to defunct investment bank Lehman Brothers, said it had cut back on output of the cells that turn sunlight into electricity and would seek to renegotiate its polysilicon supply contracts.
That effort to cut costs for polysilicon, the key material in its cells, was an attempt to offset an expected 20 percent price decline in the average selling prices of its products.
"Just recently the euro depreciated dramatically, more than 23 percent. So we have to adjust our ASP (average selling price) to support our customers," Yang said.
Europe is the largest market for photovoltaic solar equipment because of the subsidy programs set up by the German and Spanish governments.
JA Solar's stock plunged as much as 32 percent to $2.27 following the announcement, bringing its loss since the beginning of September to nearly 90 percent.
"We do not believe in the 'disaster scenario' implied by the stock's sharp drop during today's session," Raymond James analyst Pavel Molchanov said in a client note, noting that the stock was trading nearly 40 percent below its book value. "JA Solar's low cost structure and healthy balance sheet place it in a strong competitive position."
JA Solar said it would seek a 20 percent drop in the price it pays its suppliers for polysilicon in 2009, and that it had already won price concessions for 2008. The company would seek to push its contracted costs for silicon below the spot market price of about $200 to $220 per kilogram.
SALES TO SLOW
The company cut its 2008 revenue forecast to between $849.5 million to $878.9 million from the $1.05 billion to $1.17 billion it had forecast in October, and said its earnings per share would be near break-even.
It also cut its 2009 revenue forecast to $1.5 billion to $1.7 billion from the previously issued $2.0 billion to $2.2 billion.
Fourth quarter growth margins would drop to 5 to 7 percent, the company said, from 21.6 percent in the third quarter and 23.3 percent in the second quarter.
JA Solar said it lost a net $21.0 million, or 36 cents per American Depositary Receipt, in the third quarter. In the same quarter a year ago it earned $24.4 million, or 17 cents per ADS.
Excluding one-time items, the Hebei, China-based company reported earnings of 25 cents per share, just short of Wall Street analysts' average forecast of 26 cents per share, according to Reuters Estimates'
Total revenue rose to $312.3 million from $125.2 million, and beat estimates of $302.1 million, according to Reuters Estimates, as the company more than doubled its solar cell sales.
JA Solar posted a one-time loss of $100 million in investments it made with Lehman, a $7.3 million loss from the derivatives deals with the bank and a 1.1 million share dilution based on shares lent to the collapsed investment bank.
By Matt Daily
NEW YORK (Reuters) - Chinese solar cell maker JA Solar Holdings Co Ltd said on Wednesday the global economic slump had triggered a "panic" in the solar market, prompting it to slash its sales forecasts and sending its shares down more than 30 percent.
Sales of solar cells and panels have risen sharply in recent quarters as companies such as JA Solar ramped up production of the clean power source, but the global economic slowdown has caused that growth to slow, leading to a supply glut.
"At this moment the market reaction has been panic," Samuel Yang, chief executive officer, told a conference call.
The company, which posted a quarterly loss from its ties to defunct investment bank Lehman Brothers, said it had cut back on output of the cells that turn sunlight into electricity and would seek to renegotiate its polysilicon supply contracts.
That effort to cut costs for polysilicon, the key material in its cells, was an attempt to offset an expected 20 percent price decline in the average selling prices of its products.
"Just recently the euro depreciated dramatically, more than 23 percent. So we have to adjust our ASP (average selling price) to support our customers," Yang said.
Europe is the largest market for photovoltaic solar equipment because of the subsidy programs set up by the German and Spanish governments.
JA Solar's stock plunged as much as 32 percent to $2.27 following the announcement, bringing its loss since the beginning of September to nearly 90 percent.
"We do not believe in the 'disaster scenario' implied by the stock's sharp drop during today's session," Raymond James analyst Pavel Molchanov said in a client note, noting that the stock was trading nearly 40 percent below its book value. "JA Solar's low cost structure and healthy balance sheet place it in a strong competitive position."
JA Solar said it would seek a 20 percent drop in the price it pays its suppliers for polysilicon in 2009, and that it had already won price concessions for 2008. The company would seek to push its contracted costs for silicon below the spot market price of about $200 to $220 per kilogram.
SALES TO SLOW
The company cut its 2008 revenue forecast to between $849.5 million to $878.9 million from the $1.05 billion to $1.17 billion it had forecast in October, and said its earnings per share would be near break-even.
It also cut its 2009 revenue forecast to $1.5 billion to $1.7 billion from the previously issued $2.0 billion to $2.2 billion.
Fourth quarter growth margins would drop to 5 to 7 percent, the company said, from 21.6 percent in the third quarter and 23.3 percent in the second quarter.
JA Solar said it lost a net $21.0 million, or 36 cents per American Depositary Receipt, in the third quarter. In the same quarter a year ago it earned $24.4 million, or 17 cents per ADS.
Excluding one-time items, the Hebei, China-based company reported earnings of 25 cents per share, just short of Wall Street analysts' average forecast of 26 cents per share, according to Reuters Estimates'
Total revenue rose to $312.3 million from $125.2 million, and beat estimates of $302.1 million, according to Reuters Estimates, as the company more than doubled its solar cell sales.
JA Solar posted a one-time loss of $100 million in investments it made with Lehman, a $7.3 million loss from the derivatives deals with the bank and a 1.1 million share dilution based on shares lent to the collapsed investment bank.
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