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 suntech. Show all posts
Showing posts with label suntech. Show all posts
Friday, May 8, 2009
Saturday, April 11, 2009
Suntech teams with Swinburne University for next-generation cell research
06 April 2009 | By Síle Mc Mahon
Great strides in solar cell efficiency are the name of the game as Suntech has teamed up with an Australian university to focus on the development of solar cells that boast twice the efficiency but half the cost of conventional cells. Joining research forces with Swinburne University of Technology of Melbourne, Suntech’s CEO Dr. Zhengrong Shi will lead the collaborative effort with the University’s Centre for Micro-Photonics Director, Professor Min Gu (below right).
"The project will be based around the development of nanoplasmonic solar cells," said Professor Gu. This new technology allows for the efficient collection of solar energy in a wider colour range than those currently being developed in other laboratories. "These will be twice as efficient as the current generation of cells, and will also cost significantly less to run."
The collaborative research group will be based in Swinburne's new Advanced Technology Centre, a nearly-completed $130 million dollar development. Tapping Suntech’s manufacturing experience and Swinburne’s years of research expertise, the project is expected to yield the next-generation cells within the next five years.
Dr. Shi said, "This relationship will combine Swinburne's high quality research with Suntech's ability to rapidly commercialize new technologies into cost effective applications. Nanoplasmonic technology has the potential to take solar to the next level."
Funding will come in the form of a $3 million dollar contribution to the venture from Swinburne University, with a further $3 million coming from Suntech throughout the lifecycle of the research, and a tender for further funding being presented to the Victorian Government.
Great strides in solar cell efficiency are the name of the game as Suntech has teamed up with an Australian university to focus on the development of solar cells that boast twice the efficiency but half the cost of conventional cells. Joining research forces with Swinburne University of Technology of Melbourne, Suntech’s CEO Dr. Zhengrong Shi will lead the collaborative effort with the University’s Centre for Micro-Photonics Director, Professor Min Gu (below right).
"The project will be based around the development of nanoplasmonic solar cells," said Professor Gu. This new technology allows for the efficient collection of solar energy in a wider colour range than those currently being developed in other laboratories. "These will be twice as efficient as the current generation of cells, and will also cost significantly less to run."
The collaborative research group will be based in Swinburne's new Advanced Technology Centre, a nearly-completed $130 million dollar development. Tapping Suntech’s manufacturing experience and Swinburne’s years of research expertise, the project is expected to yield the next-generation cells within the next five years.
Dr. Shi said, "This relationship will combine Swinburne's high quality research with Suntech's ability to rapidly commercialize new technologies into cost effective applications. Nanoplasmonic technology has the potential to take solar to the next level."
Funding will come in the form of a $3 million dollar contribution to the venture from Swinburne University, with a further $3 million coming from Suntech throughout the lifecycle of the research, and a tender for further funding being presented to the Victorian Government.
Saturday, January 31, 2009
Suntech Reports Preliminary Fourth Quarter and Full Year 2008 Financial Results
Company Exceeds Fourth Quarter Revenue and Full Year PV Product Shipment Guidance; Announces Repurchase of $93.8 Million of Convertible Senior Notes SAN FRANCISCO and WUXI, China, Jan. 23
SAN FRANCISCO and WUXI, China, Jan. 23 /PRNewswire-Asia/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module
manufacturer, today announced preliminary financial results for the fourth
quarter and full year 2008.
For the fourth quarter of 2008, Suntech expects total net revenues to be
in the range of $405 million to $420 million, above previously issued guidance
of revenues in the range of $345 million to $360 million. Full year 2008 total
net revenues are expected to be in the range of $1.91 billion to $1.93 billion
and full year 2008 PV product shipments are expected to be in the range of
493MW to 496MW.
As a result of the rapid decline in silicon prices in the fourth quarter,
Suntech expects to make an inventory provision in the range of $46 million to
$58 million, which would have a negative impact to the gross margin of 11% to
14%. Fourth quarter 2008 consolidated GAAP gross margin is expected to be in
the range of -1% to 2%.
"We are pleased to have exceeded our revised revenue and shipment guidance
for the fourth quarter and full year 2008," said Dr. Zhengrong Shi, Suntech's
Chairman and CEO. "While the weakening macro-economic environment and limited
availability of credit has led to rapid changes in market conditions and
reduced visibility, we believe that there is relatively strong underlying
demand for Suntech products. We also believe that in this challenging
environment, customers recognize the value in partnering with Suntech due to
our reputation for consistently delivering premium quality modules, record of
very successful projects, localized customer service and commitment to solar
innovation."
Convertible Senior Notes Repurchase and Investment Impairment
During the fourth quarter of 2008, Suntech conducted open market
repurchases of Suntech's 0.25% Convertible Senior Notes due 2012. Through
December 31, 2008, Suntech re-purchased $93.8 million aggregate principal
amount of the Convertible Senior Notes for a total cash consideration of $61.0
million. As a result, Suntech realized a net gain of approximately $30 million.
Suntech may from time to time seek to make additional repurchases of its
Convertible Senior Notes. Such repurchases, if any, will depend on prevailing
market conditions, our liquidity requirements and other factors.
Due to the rapid decline in silicon prices and difficult financing
environment, Suntech expects to incur an expense related to the impairment of
Suntech's investments in Nitol Solar and Hoku Materials. The total value of
the investment impairment is expected to be in the range of approximately $49
million to $52 million.
As of December 31, 2008, Suntech's cash and cash equivalents balance was
approximately $508 million, which is approximately $113 million higher than
the cash and cash equivalents balance at the end of the third quarter of 2008.
Cash and cash equivalents increased primarily due to the liquidation of some
short term investments and the accelerated collection of some Value Added Tax
Recoverable.
Amy Zhang, Suntech's Chief Financial Officer, said, "The prudent
restructuring of our balance sheet enabled us to simultaneously reduce our
Convertible Senior Notes commitment and increase our cash balance during the
fourth quarter. With our relatively strong financial status, we believe we are
well positioned to weather the global economic downturn and capitalize on the
long term growth potential of the solar industry."
The Company also announced that it had reduced the workforce by
approximately 800 employees as a result of ongoing performance evaluation in
the fourth quarter of 2008. In addition, Suntech suspended the hiring of a
further 2,000 new staff in line with the Company's decision to maintain
production capacity at 1GW as a result of the difficult economic environment.
Suntech will consider further expansion and hiring when market conditions
improve. Suntech's headcount as of December 31, 2008 was 9,070.
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the company's
financial closing procedures and external audit process for the year ended
December 31, 2008. As such, these estimates and our expectations set forth
herein may change materially.
Suntech will hold a conference call to discuss fourth quarter and full
year 2008 financial results at 8am EST on February 18, 2009. For further
information and dial in details please visit http://www.suntech-power.com
under Investor Center: Financial Events.
SAN FRANCISCO and WUXI, China, Jan. 23 /PRNewswire-Asia/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module
manufacturer, today announced preliminary financial results for the fourth
quarter and full year 2008.
For the fourth quarter of 2008, Suntech expects total net revenues to be
in the range of $405 million to $420 million, above previously issued guidance
of revenues in the range of $345 million to $360 million. Full year 2008 total
net revenues are expected to be in the range of $1.91 billion to $1.93 billion
and full year 2008 PV product shipments are expected to be in the range of
493MW to 496MW.
As a result of the rapid decline in silicon prices in the fourth quarter,
Suntech expects to make an inventory provision in the range of $46 million to
$58 million, which would have a negative impact to the gross margin of 11% to
14%. Fourth quarter 2008 consolidated GAAP gross margin is expected to be in
the range of -1% to 2%.
"We are pleased to have exceeded our revised revenue and shipment guidance
for the fourth quarter and full year 2008," said Dr. Zhengrong Shi, Suntech's
Chairman and CEO. "While the weakening macro-economic environment and limited
availability of credit has led to rapid changes in market conditions and
reduced visibility, we believe that there is relatively strong underlying
demand for Suntech products. We also believe that in this challenging
environment, customers recognize the value in partnering with Suntech due to
our reputation for consistently delivering premium quality modules, record of
very successful projects, localized customer service and commitment to solar
innovation."
Convertible Senior Notes Repurchase and Investment Impairment
During the fourth quarter of 2008, Suntech conducted open market
repurchases of Suntech's 0.25% Convertible Senior Notes due 2012. Through
December 31, 2008, Suntech re-purchased $93.8 million aggregate principal
amount of the Convertible Senior Notes for a total cash consideration of $61.0
million. As a result, Suntech realized a net gain of approximately $30 million.
Suntech may from time to time seek to make additional repurchases of its
Convertible Senior Notes. Such repurchases, if any, will depend on prevailing
market conditions, our liquidity requirements and other factors.
Due to the rapid decline in silicon prices and difficult financing
environment, Suntech expects to incur an expense related to the impairment of
Suntech's investments in Nitol Solar and Hoku Materials. The total value of
the investment impairment is expected to be in the range of approximately $49
million to $52 million.
As of December 31, 2008, Suntech's cash and cash equivalents balance was
approximately $508 million, which is approximately $113 million higher than
the cash and cash equivalents balance at the end of the third quarter of 2008.
Cash and cash equivalents increased primarily due to the liquidation of some
short term investments and the accelerated collection of some Value Added Tax
Recoverable.
Amy Zhang, Suntech's Chief Financial Officer, said, "The prudent
restructuring of our balance sheet enabled us to simultaneously reduce our
Convertible Senior Notes commitment and increase our cash balance during the
fourth quarter. With our relatively strong financial status, we believe we are
well positioned to weather the global economic downturn and capitalize on the
long term growth potential of the solar industry."
The Company also announced that it had reduced the workforce by
approximately 800 employees as a result of ongoing performance evaluation in
the fourth quarter of 2008. In addition, Suntech suspended the hiring of a
further 2,000 new staff in line with the Company's decision to maintain
production capacity at 1GW as a result of the difficult economic environment.
Suntech will consider further expansion and hiring when market conditions
improve. Suntech's headcount as of December 31, 2008 was 9,070.
The estimates presented in this press release are preliminary. Adjustments
to the estimates and projections set forth in this press release may be
identified as a result of, among other things, finalization of the company's
financial closing procedures and external audit process for the year ended
December 31, 2008. As such, these estimates and our expectations set forth
herein may change materially.
Suntech will hold a conference call to discuss fourth quarter and full
year 2008 financial results at 8am EST on February 18, 2009. For further
information and dial in details please visit http://www.suntech-power.com
under Investor Center: Financial Events.
Friday, December 19, 2008
Suntech to Deliver 3MW of Integrated Solar Systems to World Expo Shanghai 2010
SAN FRANCISCO and WUXI, China, Dec. 19 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest photovoltaic (PV) module manufacturer, today announced that it has won a bid to supply, design and install building integrated photovoltaic systems (BIPV) with a total capacityof 3MW on the China and Theme Pavilions at the World Expo Shanghai 2010 ("theExpo"). The projects, which will be the largest BIPV installations in China, are scheduled to be completed by September 2009.
Centered on the theme "Better City, Better Life", the Expo will explore global initiatives that enable sustainable urban development. The China and Theme Pavilions which will be developed by Shenergy Group, one of Shanghai's leading energy companies, will emphasize the importance of urban harmony with the natural environment, including the sustainable use of natural resources such as water and sunlight. The 3MW building integrated rooftop solar systems will be designed, developed and installed by Suntech's in-house system integration team. World Expo Shanghai 2010 will be held from May 1 - October31, 2010 in Shanghai, China.
"Building integrated solar systems, which turn common building materials such as rooftops and facades into power generators, are a logical step for the evolution of the urban environment. Our selection underscores Suntech's position as a global brand and world leader in the solar industry as well as our leading system integration capability in China. We are honored to display China's technological expertise in renewable energy to the world at the Expo,"said Dr. Zhengrong Shi, Suntech's Chairman and CEO.
The sustainable theme of the Expo echoes China's broader commitment to renewable energy solutions. As part of its Renewable Energy Law in 2005, China established a target to generate 15% of its total electricity from renewable energy sources by 2020. China plans to invest $180 billion in renewable energy over a 15-year period, fostering the emergence of renewable energy and sustainable development, including solar, wind, hydropower and biomass.
"Showcasing two of the world's largest building integrated solar systemsat the World Expo Shanghai 2010 indicates China's growing recognition of solar's ability to play a key role in renewable energy generation and sustainable urban development. With China's clear commitment to increasing adoption of renewable energy solutions, we are confident that the Chinese solar market will experience rapid growth in the next few years," Dr. Shi continued.
Suntech's system integration team is one of the most experienced and capable in China. They have completed a range of technically complex building integrated solar systems including the 120kW Beijing Jingya Hotel curtain wall, an 800kW Light Thru system on the Wuxi Airport, and the 1MW BIPV facade at Suntech's new headquarters in Wuxi.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated solar products under the MSK Solar Design Line(TM). Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with MMA RenewableVentures. With regional headquarters in China, Switzerland and San Franciscoand sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visithttp://www.suntech-power.com .
Centered on the theme "Better City, Better Life", the Expo will explore global initiatives that enable sustainable urban development. The China and Theme Pavilions which will be developed by Shenergy Group, one of Shanghai's leading energy companies, will emphasize the importance of urban harmony with the natural environment, including the sustainable use of natural resources such as water and sunlight. The 3MW building integrated rooftop solar systems will be designed, developed and installed by Suntech's in-house system integration team. World Expo Shanghai 2010 will be held from May 1 - October31, 2010 in Shanghai, China.
"Building integrated solar systems, which turn common building materials such as rooftops and facades into power generators, are a logical step for the evolution of the urban environment. Our selection underscores Suntech's position as a global brand and world leader in the solar industry as well as our leading system integration capability in China. We are honored to display China's technological expertise in renewable energy to the world at the Expo,"said Dr. Zhengrong Shi, Suntech's Chairman and CEO.
The sustainable theme of the Expo echoes China's broader commitment to renewable energy solutions. As part of its Renewable Energy Law in 2005, China established a target to generate 15% of its total electricity from renewable energy sources by 2020. China plans to invest $180 billion in renewable energy over a 15-year period, fostering the emergence of renewable energy and sustainable development, including solar, wind, hydropower and biomass.
"Showcasing two of the world's largest building integrated solar systemsat the World Expo Shanghai 2010 indicates China's growing recognition of solar's ability to play a key role in renewable energy generation and sustainable urban development. With China's clear commitment to increasing adoption of renewable energy solutions, we are confident that the Chinese solar market will experience rapid growth in the next few years," Dr. Shi continued.
Suntech's system integration team is one of the most experienced and capable in China. They have completed a range of technically complex building integrated solar systems including the 120kW Beijing Jingya Hotel curtain wall, an 800kW Light Thru system on the Wuxi Airport, and the 1MW BIPV facade at Suntech's new headquarters in Wuxi.
About Suntech
Suntech Power Holdings Co., Ltd. (NYSE: STP) is the world's leading solar energy company as measured by production output of solar modules. Suntech designs, develops, manufactures, and markets premium-quality, high-output, cost-effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's patent-pending Pluto technology for crystalline silicon solar cells improves power output by up to 12% compared to conventional production methods.
Suntech also offers one of the broadest ranges of building-integrated solar products under the MSK Solar Design Line(TM). Suntech designs and delivers commercial and utility scale solar power systems through its wholly owned subsidiaries Suntech Energy Solutions and Suntech Energy Engineering and will own and operate projects greater than 10 megawatts in the United States through Gemini Solar Development Company, a joint venture with MMA RenewableVentures. With regional headquarters in China, Switzerland and San Franciscoand sales offices worldwide, Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. For more information, please visithttp://www.suntech-power.com .
Wednesday, December 10, 2008
Suntech Power and Open Energy Sign Solar Roof Tile Licensing Deal
License Agreement Combines Open Energy's Award-Winning Design and Innovation with Suntech's Manufacturing and Marketing Expertise
[09-December-2008]
SAN DIEGO and SAN FRANCISCO, Dec. 9 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading manufacturer of photovoltaic (PV) modules, and Open Energy Corporation (OTC Bulletin Board: OEGY), a developer of innovative and elegant BIPV products, energy management applications and solar energy solutions announced that they have entered into an exclusive agreement licensing the worldwide manufacture, distribution and marketing of Open Energy's building integrated solar roof tile product to Suntech. Open Energy granted Suntech an exclusive license of the intellectual property incorporated into its solar roof tile product and any similar or new generation tile roof products. The solar roof tiles are 50 watt four foot BIPV tiles and are available in different color panels.
"The relationship with Suntech gives Open Energy access to unmatched manufacturing capabilities and a worldwide distribution network, with particular strength in Europe and Asia," said David Field, president & chief executive officer of Open Energy. "This allows us to reach even more international customers and gives us the opportunity to concentrate on our award-winning and innovative product design for next generation products. As the solar industry continues to grow in 2009 particularly in Europe, where BIPV solar systems enjoy substantial market premiums, it will be critical to have the reach and scale that the relationship with Suntech brings to our company. We chose to work with Suntech because they have world class manufacturing, an incredible sales force and a solid foundation of resources and customers."
"Open Energy is widely recognized for designing innovative, award-winning solar solutions, while Suntech is a world leader in manufacturing, marketing and sales of solar products," said Leonard May, Suntech Managing Director of BIPV Products. "By combining these core strengths, we are confident that we will consistently deliver innovative products, the highest quality and outstanding value to our customers capitalizing on the strengths of both companies."
Eagle Roofing Products is expected to continue as master distributor of the tile product in the U.S.
About Open Energy
Open Energy Corporation is a next-generation solar energy company that develops clean energy solutions, innovative solar products and energy management applications. Open Energy's award-winning products include proprietary, cost-competitive and attractive BIPV solar tiles, membranes and asphalt/composition products. In addition, the EcoTouch Energy Management System gives consumers control over their energy usage while saving money. Open Energy's portfolio of products and services are coupled with innovative financing to enable green Solar Communities to provide low-cost power with little to no upfront cost to the consumer. Open Energy is headquartered in Solana Beach, California. For more information, visit http://www.openenergycorp.com .
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
[09-December-2008]
SAN DIEGO and SAN FRANCISCO, Dec. 9 /PRNewswire-Asia/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), a leading manufacturer of photovoltaic (PV) modules, and Open Energy Corporation (OTC Bulletin Board: OEGY), a developer of innovative and elegant BIPV products, energy management applications and solar energy solutions announced that they have entered into an exclusive agreement licensing the worldwide manufacture, distribution and marketing of Open Energy's building integrated solar roof tile product to Suntech. Open Energy granted Suntech an exclusive license of the intellectual property incorporated into its solar roof tile product and any similar or new generation tile roof products. The solar roof tiles are 50 watt four foot BIPV tiles and are available in different color panels.
"The relationship with Suntech gives Open Energy access to unmatched manufacturing capabilities and a worldwide distribution network, with particular strength in Europe and Asia," said David Field, president & chief executive officer of Open Energy. "This allows us to reach even more international customers and gives us the opportunity to concentrate on our award-winning and innovative product design for next generation products. As the solar industry continues to grow in 2009 particularly in Europe, where BIPV solar systems enjoy substantial market premiums, it will be critical to have the reach and scale that the relationship with Suntech brings to our company. We chose to work with Suntech because they have world class manufacturing, an incredible sales force and a solid foundation of resources and customers."
"Open Energy is widely recognized for designing innovative, award-winning solar solutions, while Suntech is a world leader in manufacturing, marketing and sales of solar products," said Leonard May, Suntech Managing Director of BIPV Products. "By combining these core strengths, we are confident that we will consistently deliver innovative products, the highest quality and outstanding value to our customers capitalizing on the strengths of both companies."
Eagle Roofing Products is expected to continue as master distributor of the tile product in the U.S.
About Open Energy
Open Energy Corporation is a next-generation solar energy company that develops clean energy solutions, innovative solar products and energy management applications. Open Energy's award-winning products include proprietary, cost-competitive and attractive BIPV solar tiles, membranes and asphalt/composition products. In addition, the EcoTouch Energy Management System gives consumers control over their energy usage while saving money. Open Energy's portfolio of products and services are coupled with innovative financing to enable green Solar Communities to provide low-cost power with little to no upfront cost to the consumer. Open Energy is headquartered in Solana Beach, California. For more information, visit http://www.openenergycorp.com .
About Suntech
Suntech Power Holdings Co., Ltd. is a world leading solar energy company as measured by both production output and capacity of solar cells and modules. Suntech is passionate about improving the environment we live in and dedicated to developing advanced solar solutions that enable sustainable development. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly solar products for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech offers one of the broadest ranges of building integrated photovoltaic (BIPV) products under the MSK brand. Suntech has sales offices worldwide and is a market share leader in key global solar markets. For more information, please visit http://www.suntech-power.com .
Tuesday, December 9, 2008
Chinese PV pioneer helps build Israel's biggest solar power station
www.chinaview.cn 2008-12-09 06:27:49
KATSRIN, Israel, Dec. 8 (Xinhua) -- Israel's biggest solar power station was inaugurated on Monday in this Israeli northern town, setting up a landmark in the Chinese-Israeli cooperation in the field of clean energy.
The 50 KW rooftop project, estimated to generate 85,000 KWH a year, was co-built by China's Suntech Power Holdings Co., Ltd., a world-leading solar energy company, mainly specialized in photovoltaic (PV) power generation technologies, and Solarit Doral, a major local player in Israel's renewable energy market.
Dubbed the biggest and most efficient of its kind so far in Israel, the solar power station is integrated into Israel's national grid, as the Jewish state has been carrying out incentive measures to prod the development of alternative energy, including purchasing cleanly generated electricity at a relatively higher price.
Highlighting the urgent need to find alternative resources to power the world and protect the environment, Zhao Jun, Chinese ambassador to Israel, said at the ceremony that China has been investing heavily in alternative energy, and shares great cooperation potentials with Israel in relevant respects.
"It is very appropriate and natural for Chinese and Israeli companies to work together on this," he told Israeli National Infrastructures Minister Binyamin Ben-Eliezer and local officials.
Ben-Eliezer, whose ministry has unveiled an ambitious plan to produce 20 percent of its electricity through renewable resources by 2020, stressed that Israeli government pays high attention to the development of clean energy, and noted that Israel and China should deepen cooperation in commonly-interested fields, particularly water resources and renewable energy.
Meanwhile, representatives from Suntech, a listed company in New York Stock Exchange, said that the company is planning with its Israeli counterpart to construct a larger solar power plant in southern Israel.
Editor: Sun
KATSRIN, Israel, Dec. 8 (Xinhua) -- Israel's biggest solar power station was inaugurated on Monday in this Israeli northern town, setting up a landmark in the Chinese-Israeli cooperation in the field of clean energy.
The 50 KW rooftop project, estimated to generate 85,000 KWH a year, was co-built by China's Suntech Power Holdings Co., Ltd., a world-leading solar energy company, mainly specialized in photovoltaic (PV) power generation technologies, and Solarit Doral, a major local player in Israel's renewable energy market.
Dubbed the biggest and most efficient of its kind so far in Israel, the solar power station is integrated into Israel's national grid, as the Jewish state has been carrying out incentive measures to prod the development of alternative energy, including purchasing cleanly generated electricity at a relatively higher price.
Highlighting the urgent need to find alternative resources to power the world and protect the environment, Zhao Jun, Chinese ambassador to Israel, said at the ceremony that China has been investing heavily in alternative energy, and shares great cooperation potentials with Israel in relevant respects.
"It is very appropriate and natural for Chinese and Israeli companies to work together on this," he told Israeli National Infrastructures Minister Binyamin Ben-Eliezer and local officials.
Ben-Eliezer, whose ministry has unveiled an ambitious plan to produce 20 percent of its electricity through renewable resources by 2020, stressed that Israeli government pays high attention to the development of clean energy, and noted that Israel and China should deepen cooperation in commonly-interested fields, particularly water resources and renewable energy.
Meanwhile, representatives from Suntech, a listed company in New York Stock Exchange, said that the company is planning with its Israeli counterpart to construct a larger solar power plant in southern Israel.
Editor: Sun
Wednesday, December 3, 2008
Suntech's Seven Employee Injured in Production Facilities Accident
On November 28, 2008, seven Suntech employees were injured as a result of an accident that occurred due to the malfunction of a piece of module lamination equipment at Suntech Power's PV module facilities in Wuxi, China. The seven injured employees are receiving further medical treatment and are recovering in hospital.
China's solar energy industry was suffering the cold winter, and this further lowered the temperature.
To be frank, the working condition at many Chinese PV manufacturers are not good at all, and the employees working at the production lines are poorly paid.
China's solar energy industry was suffering the cold winter, and this further lowered the temperature.
To be frank, the working condition at many Chinese PV manufacturers are not good at all, and the employees working at the production lines are poorly paid.
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.
Tuesday, November 11, 2008
China Solar Companies Reportedly Slowing Production
November 10, 2008, 1:12 pm
China Solar Companies Reportedly Slowing Production
Posted by Eric Savitz
The China-based solar cell and module manufacturers are slowing down production in anticipation of slowing demand and falling prices, according to Wedge MKI, the Asia-based research arm of investment research boutique Wedge Partners. In a research note this morning, Wedge provided a rundown on the moves some of the companies in the industry are making in response to the rapidly shifting economic conditions, including much tighter credit markets, falling module and polysilicon prices and a sharp appreciation in the dollar. "Companies are doing their best to hold on while pricing falls apart, but market visibility is very poor," Wedge reports.
Here's a rundown on the steps Wedge finds unfolding at some of the key players:
Suntech (STP): "Quietly laying off about 10% of its 10,000 employees, and has idled half its production lines." Wedge says the company is "lobbying regional banks for short-term financial support in order to ballast the company during this downturn." The company has "put on ice" its plans to expand from 700 MW to 1.2 GW by the end of the year. European orders are down, and depreciation of the dollar means ASPs "are untenably low." Prices proposed for new contracts would put solar manufacturers "into a loss position."
JA Solar (JASO): Customer orders are "drastically down." Channel sources say the company has "large volumes of inventory which will ultimately have to be sold at much-reduced prices." Contends that half of the company's production lines have been closed down.
Yingli (YGE): Postponed or canceled planned expansion from 400 MW to 600 MW. Trying unsuccessfully to renegotiate contact with equipment supplier GT Solar (SOLR); seeking to retrieve its down payment.
Trina (TSL): Halted plans to expand its plan to 700 MW, at least through Q1.
Canadian Solar (CSIQ): "Canadian Solar may also have slowed its ingot plant in Luoyang, Henan."
Wedge notes that the spot price of polysilicon in the China market is down to $233, from $280 last week. "Although the lowered input cost should offer relief, we understand that purchasing is very sluggish due to lack of visibility on market demand and also weak financing for pre-payments," Wedge reports.
China Solar Companies Reportedly Slowing Production
Posted by Eric Savitz
The China-based solar cell and module manufacturers are slowing down production in anticipation of slowing demand and falling prices, according to Wedge MKI, the Asia-based research arm of investment research boutique Wedge Partners. In a research note this morning, Wedge provided a rundown on the moves some of the companies in the industry are making in response to the rapidly shifting economic conditions, including much tighter credit markets, falling module and polysilicon prices and a sharp appreciation in the dollar. "Companies are doing their best to hold on while pricing falls apart, but market visibility is very poor," Wedge reports.
Here's a rundown on the steps Wedge finds unfolding at some of the key players:
Suntech (STP): "Quietly laying off about 10% of its 10,000 employees, and has idled half its production lines." Wedge says the company is "lobbying regional banks for short-term financial support in order to ballast the company during this downturn." The company has "put on ice" its plans to expand from 700 MW to 1.2 GW by the end of the year. European orders are down, and depreciation of the dollar means ASPs "are untenably low." Prices proposed for new contracts would put solar manufacturers "into a loss position."
JA Solar (JASO): Customer orders are "drastically down." Channel sources say the company has "large volumes of inventory which will ultimately have to be sold at much-reduced prices." Contends that half of the company's production lines have been closed down.
Yingli (YGE): Postponed or canceled planned expansion from 400 MW to 600 MW. Trying unsuccessfully to renegotiate contact with equipment supplier GT Solar (SOLR); seeking to retrieve its down payment.
Trina (TSL): Halted plans to expand its plan to 700 MW, at least through Q1.
Canadian Solar (CSIQ): "Canadian Solar may also have slowed its ingot plant in Luoyang, Henan."
Wedge notes that the spot price of polysilicon in the China market is down to $233, from $280 last week. "Although the lowered input cost should offer relief, we understand that purchasing is very sluggish due to lack of visibility on market demand and also weak financing for pre-payments," Wedge reports.
Thursday, October 30, 2008
Canadian Solar Also Wins China Mobile PV Contract
Oct 30, 2008
Canadian Solar Inc (Nasdaq: CSIQ) announced on Wednesday that it has won a bid for China Mobile's (NYSE: CHL, 941.HK) 2008 photovoltaic system integration that allows the company to provide more than 6.3% of China Mobile's total solar cell module requirement. Canadian Solar began providing photovoltaic power supply modules and installation to China Mobile's western base stations in 2005.
Yingli Green Energy (NYSE: YGE) and Jiangsu-based photovoltaic cell manufacturer Suntech (NYSE: STP) announced successful China Mobile bids earlier this month.
Canadian Solar Inc (Nasdaq: CSIQ) announced on Wednesday that it has won a bid for China Mobile's (NYSE: CHL, 941.HK) 2008 photovoltaic system integration that allows the company to provide more than 6.3% of China Mobile's total solar cell module requirement. Canadian Solar began providing photovoltaic power supply modules and installation to China Mobile's western base stations in 2005.
Yingli Green Energy (NYSE: YGE) and Jiangsu-based photovoltaic cell manufacturer Suntech (NYSE: STP) announced successful China Mobile bids earlier this month.
Tuesday, October 14, 2008
Suntech Wins New China Mobile Contract
Posted by: Cherry Zhang on Oct 14, 2008
Jiangsu-based photovoltaic cell manufacturer Suntech (NYSE: STP) announced on Tuesday that it has won the bid for China Mobile's (NYSE: CHL, 941.HK) 2008 photovoltaic system integration and controller procurement project (24V) and solar cell module and installation support. Suntech beat out more than 30 competitors including Trina Solar (NYSE: TSL) to offer an estimated 2MWp in solar cell modules. Suntech was China Mobile's largest solar supplier providing 1.4MWp of solar modules to nine provinces in 2007.
Jiangsu-based photovoltaic cell manufacturer Suntech (NYSE: STP) announced on Tuesday that it has won the bid for China Mobile's (NYSE: CHL, 941.HK) 2008 photovoltaic system integration and controller procurement project (24V) and solar cell module and installation support. Suntech beat out more than 30 competitors including Trina Solar (NYSE: TSL) to offer an estimated 2MWp in solar cell modules. Suntech was China Mobile's largest solar supplier providing 1.4MWp of solar modules to nine provinces in 2007.
Saturday, October 4, 2008
MMA Renewable Ventures, Suntech Power Holdings Form JV to Develop Photovoltaic Projects
10/2/2008
(RTTNews) - Thursday, MMA Renewable Ventures, a subsidiary of Municipal Mortgage & Equity, LLC said the company and Suntech Power Holdings Co., Ltd. formed Gemini Solar Development Co., a joint venture to develop and finance photovoltaic projects 10 megawatts and larger. Separately, solar energy company Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, to significantly expand its share of the U.S. solar market.
With regard to creation of joint venture company, the projects undertaken by Gemini Solar will be co-owned and built by MMA Renewable Ventures, Suntech and their third-party finance partners. Suntech's director of structured finance, Kristina Peterson, will assume the role of Gemini's president.
Gemini Solar will supply an end-to-end solution to address the increasing demand for large-scale solar power projects as the U.S. increases its efforts towards energy independence, MMA Renewable Ventures noted.
Chief executive officer of MMA Renewable Ventures, Matt Cheney, commented, "Utility and other large-scale, distributed solar power systems are emerging as one of the fastest growing segments of the solar industry. MMA Renewable Ventures brings structured finance expertise and an unparalleled track record in developing and delivering quality renewable energy projects in the U.S. Suntech is an international innovator in solar, which brings manufacturing, large-scale module supply, advanced solar solutions and global presence to the joint venture. Together, we will enable investors to finance low risk, reliable solar power projects, while helping utilities, industry and government secure reliable, renewable energy right away."
In a separate release, Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, for the purpose of significantly expanding its share of the U.S. solar market.
One of the initiatives is acquisition of California-based commercial solar system integration company EI Solutions. Suntech expects the acquisition to enable it to provide complete solar solutions to commercial, utility and government customers in US. The new subsidiary will be named Suntech Energy Solutions and EI Solutions' present president, Andrew Beebe, will head the subsidiary.
Another initiative is to rapidly expand Suntech's U.S. dealer network to increase penetration into the residential roof-top and small commercial system solar market and build brand recognition with downstream solar integrators.
According to Suntech, all the three initiatives will enable it to serve more completely the full breadth of U.S. customers, from residential and commercial building owners to utilities and government. Consequently, the company intends to triple sales to the U.S. in 2009.
(RTTNews) - Thursday, MMA Renewable Ventures, a subsidiary of Municipal Mortgage & Equity, LLC said the company and Suntech Power Holdings Co., Ltd. formed Gemini Solar Development Co., a joint venture to develop and finance photovoltaic projects 10 megawatts and larger. Separately, solar energy company Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, to significantly expand its share of the U.S. solar market.
With regard to creation of joint venture company, the projects undertaken by Gemini Solar will be co-owned and built by MMA Renewable Ventures, Suntech and their third-party finance partners. Suntech's director of structured finance, Kristina Peterson, will assume the role of Gemini's president.
Gemini Solar will supply an end-to-end solution to address the increasing demand for large-scale solar power projects as the U.S. increases its efforts towards energy independence, MMA Renewable Ventures noted.
Chief executive officer of MMA Renewable Ventures, Matt Cheney, commented, "Utility and other large-scale, distributed solar power systems are emerging as one of the fastest growing segments of the solar industry. MMA Renewable Ventures brings structured finance expertise and an unparalleled track record in developing and delivering quality renewable energy projects in the U.S. Suntech is an international innovator in solar, which brings manufacturing, large-scale module supply, advanced solar solutions and global presence to the joint venture. Together, we will enable investors to finance low risk, reliable solar power projects, while helping utilities, industry and government secure reliable, renewable energy right away."
In a separate release, Suntech Power Holdings announced two other initiatives, other than forming Gemini Solar, for the purpose of significantly expanding its share of the U.S. solar market.
One of the initiatives is acquisition of California-based commercial solar system integration company EI Solutions. Suntech expects the acquisition to enable it to provide complete solar solutions to commercial, utility and government customers in US. The new subsidiary will be named Suntech Energy Solutions and EI Solutions' present president, Andrew Beebe, will head the subsidiary.
Another initiative is to rapidly expand Suntech's U.S. dealer network to increase penetration into the residential roof-top and small commercial system solar market and build brand recognition with downstream solar integrators.
According to Suntech, all the three initiatives will enable it to serve more completely the full breadth of U.S. customers, from residential and commercial building owners to utilities and government. Consequently, the company intends to triple sales to the U.S. in 2009.
Suntech to Power Arizona's Largest Building Mounted PV Project at Arizona State University
SAN FRANCISCO and WUXI, China, Sept. 30 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd., one of the world's leading manufacturers of photovoltaic cells and modules, today announced it has been selected to supply 1.6 megawatt (MW) of solar panels to Sun Devil Solar LLC, a wholly owned subsidiary of Integrys Energy Services, for its project with Arizona State University (ASU). The project will be installed on top of two elevated parking structures in the middle of the ASU's main campus using an innovating tracking system. The solar installations are to be completed by the end of 2008.
The total project size of 1.6 MW makes it one of the largest university installations in the United States. It will generate more than 3 million kilowatt hours annually, enough electric generating capacity to run approximately 3,680 computers at the university or the equivalent of 260 Arizona households. The project will also reduce 2,260 tons of carbon emissions per year -- equivalent to taking 425 cars off the road.
"We are pleased our ground-breaking project will be powered by Suntech solar panels. Suntech's high quality panels will ensure ASU is able to reap the benefits of clean, green solar energy for many years to come," said Jonathan Fink, Director of the Global Institute of Sustainability and University Sustainability Officer at ASU. "We believe in the potential of solar to become a cost-effective energy solution and hope that ASU's large solar installation and solar R&D initiatives will encourage further solar adoption throughout Arizona and at other universities throughout the U.S."
ASU has long term plans to install 7 MW of solar-generating capacity at the Tempe campus as well as other campus locations. In addition, the university has a wide range of sustainability initiatives and has established the world's first School of Sustainability. ASU has received multiple awards and grants from the US Department of Energy's Solar America Initiative to support ongoing solar research.
"We commend Arizona State University for their vision of sustainability and commitment to solar energy," said Roger Efird, President of Suntech America. "With an extremely sunny climate, the state of Arizona is well situated to be at the forefront of solar adoption in the U.S., and ASU's solar programs are ensuring that Arizona is also at the forefront of solar research."
This first phase 1.6 MW solar installation will be owned and operated by Sun Devil Solar LLC, a wholly owned subsidiary of Integrys Energy Services. Integrys Energy Services, a subsidiary of Integrys Energy Group (NYSE:TEG) , is investing in and promoting renewable energy company-wide, which it believes is one key to the future of its industry. To support this value, Integrys Energy Services has systematically reduced its investment in non-renewable production and devoted significant capital to the development of solar, wind and landfill-to-gas operations.
"Renewable energy from fuel sources such as solar offers huge potential for air quality and global climate change concerns, and for the growth of sustainable alternatives on the path toward the energy supply of the future. Integrys Energy Services is committed to environmental stewardship and is pleased to be involved in this innovative project that is smart for business, for the University and for the environment," said Mark Radtke, President of Integrys Energy Services.
The ASU solar installation is partly subsidized through a Renewable Incentive Program implemented by APS, Arizona's largest electric utility. The program, which is approved by the Arizona Corporation Commission and funded by customers, provides financial incentives to residential and commercial customers who add renewable systems such as solar water heaters, solar electric systems and small windmills.
The Incentive Program is just one of several Green Choice Programs offered by APS including offering special Green Rates to increase the amount of utility-scale renewable energy a customer receives, supporting a program that offers Compact Florescent Light bulbs at a substantial discount, and providing rebates to customers who install high-efficiency air conditioners.
"We're excited to partner with ASU on this important solar installation. Not only is it a great example for other Arizona businesses, but the more renewable energy produced by ASU, the better able APS can manage the rising cost of infrastructure that is needed to meet the growing energy needs of Arizona," said Barbara Lockwood, APS' Renewable Energy Manager.
The project team includes SolEquity, Inc. of Scottsdale, AZ and CarbonFree Technology Inc. of Toronto, ON, as project developers, ViaSol Energy Solutions of Tempe, AZ, as the prime contractor and ETA Engineering and IronCo Enterprises as subcontractors.
The total project size of 1.6 MW makes it one of the largest university installations in the United States. It will generate more than 3 million kilowatt hours annually, enough electric generating capacity to run approximately 3,680 computers at the university or the equivalent of 260 Arizona households. The project will also reduce 2,260 tons of carbon emissions per year -- equivalent to taking 425 cars off the road.
"We are pleased our ground-breaking project will be powered by Suntech solar panels. Suntech's high quality panels will ensure ASU is able to reap the benefits of clean, green solar energy for many years to come," said Jonathan Fink, Director of the Global Institute of Sustainability and University Sustainability Officer at ASU. "We believe in the potential of solar to become a cost-effective energy solution and hope that ASU's large solar installation and solar R&D initiatives will encourage further solar adoption throughout Arizona and at other universities throughout the U.S."
ASU has long term plans to install 7 MW of solar-generating capacity at the Tempe campus as well as other campus locations. In addition, the university has a wide range of sustainability initiatives and has established the world's first School of Sustainability. ASU has received multiple awards and grants from the US Department of Energy's Solar America Initiative to support ongoing solar research.
"We commend Arizona State University for their vision of sustainability and commitment to solar energy," said Roger Efird, President of Suntech America. "With an extremely sunny climate, the state of Arizona is well situated to be at the forefront of solar adoption in the U.S., and ASU's solar programs are ensuring that Arizona is also at the forefront of solar research."
This first phase 1.6 MW solar installation will be owned and operated by Sun Devil Solar LLC, a wholly owned subsidiary of Integrys Energy Services. Integrys Energy Services, a subsidiary of Integrys Energy Group (NYSE:TEG) , is investing in and promoting renewable energy company-wide, which it believes is one key to the future of its industry. To support this value, Integrys Energy Services has systematically reduced its investment in non-renewable production and devoted significant capital to the development of solar, wind and landfill-to-gas operations.
"Renewable energy from fuel sources such as solar offers huge potential for air quality and global climate change concerns, and for the growth of sustainable alternatives on the path toward the energy supply of the future. Integrys Energy Services is committed to environmental stewardship and is pleased to be involved in this innovative project that is smart for business, for the University and for the environment," said Mark Radtke, President of Integrys Energy Services.
The ASU solar installation is partly subsidized through a Renewable Incentive Program implemented by APS, Arizona's largest electric utility. The program, which is approved by the Arizona Corporation Commission and funded by customers, provides financial incentives to residential and commercial customers who add renewable systems such as solar water heaters, solar electric systems and small windmills.
The Incentive Program is just one of several Green Choice Programs offered by APS including offering special Green Rates to increase the amount of utility-scale renewable energy a customer receives, supporting a program that offers Compact Florescent Light bulbs at a substantial discount, and providing rebates to customers who install high-efficiency air conditioners.
"We're excited to partner with ASU on this important solar installation. Not only is it a great example for other Arizona businesses, but the more renewable energy produced by ASU, the better able APS can manage the rising cost of infrastructure that is needed to meet the growing energy needs of Arizona," said Barbara Lockwood, APS' Renewable Energy Manager.
The project team includes SolEquity, Inc. of Scottsdale, AZ and CarbonFree Technology Inc. of Toronto, ON, as project developers, ViaSol Energy Solutions of Tempe, AZ, as the prime contractor and ETA Engineering and IronCo Enterprises as subcontractors.
Wednesday, September 17, 2008
Suntech breaks ground on new solar-cell production fab
16 September 2008
Suntech has broken ground on a new solar photovoltaics cell production facility in Yangzhou, Jiangsu province, China. The company says it plans to finish the factory and bring its 300-MW cell production capacity online by the end of 2009, boosting its total manufacturing capacity to 1.4 GW.
The new PV cell fab is close to one of Suntech's strategic silicon-wafer supply partners, Shunda Holdings, which the company says will enable it to realize production and operational synergies that are expected to accelerate Suntech's cost-reduction initiatives and path to grid parity.
"With Suntech's rapidly growing international reputation for quality and excellence in solar manufacturing, we are in a prime position to grow our customer base and market share," said Zhengrong Shi, Suntech's chairman/CEO (shown at left). "The Yangzhou facility will provide Suntech with room to meet our capacity expansion target of 2 GW by year end 2010 and enable us to meet the world's burgeoning demand for solar energy."
In May, Suntech announced a 13-year wafer supply agreement with a subsidiary of Shunda, in which the silicon unit will provide Suntech with specified annual volumes of wafers totaling approximately 7 GW over the course of the deal (2008-2020).
"The colocation with Shunda's polysilicon plant and wafering facilities will enable a virtual integration of the solar value chain, from polysilicon to solar panel, supporting our move to providing cost-effective solar solutions," noted Shi.
Over the past few months, Suntech has inked several multiyear supply deals with various polysilicon and wafer producers, including DC Chemical, GCL Silicon, and PV Crystalox, and has also purchased a minority stake in poly manufacturer Nitol.
Suntech has broken ground on a new solar photovoltaics cell production facility in Yangzhou, Jiangsu province, China. The company says it plans to finish the factory and bring its 300-MW cell production capacity online by the end of 2009, boosting its total manufacturing capacity to 1.4 GW.
The new PV cell fab is close to one of Suntech's strategic silicon-wafer supply partners, Shunda Holdings, which the company says will enable it to realize production and operational synergies that are expected to accelerate Suntech's cost-reduction initiatives and path to grid parity.
"With Suntech's rapidly growing international reputation for quality and excellence in solar manufacturing, we are in a prime position to grow our customer base and market share," said Zhengrong Shi, Suntech's chairman/CEO (shown at left). "The Yangzhou facility will provide Suntech with room to meet our capacity expansion target of 2 GW by year end 2010 and enable us to meet the world's burgeoning demand for solar energy."
In May, Suntech announced a 13-year wafer supply agreement with a subsidiary of Shunda, in which the silicon unit will provide Suntech with specified annual volumes of wafers totaling approximately 7 GW over the course of the deal (2008-2020).
"The colocation with Shunda's polysilicon plant and wafering facilities will enable a virtual integration of the solar value chain, from polysilicon to solar panel, supporting our move to providing cost-effective solar solutions," noted Shi.
Over the past few months, Suntech has inked several multiyear supply deals with various polysilicon and wafer producers, including DC Chemical, GCL Silicon, and PV Crystalox, and has also purchased a minority stake in poly manufacturer Nitol.
Wednesday, May 28, 2008
Suntech Powers Up Its Solar Wafer Supply
Suntech is improving its wafer supply in hopes of becoming a leading manufacturer of solar modules.
On Tuesday, Suntech Power Holdings bought a $98.0 million stake in Shunda Holdings, a China-based solar wafer manufacturer. Details of the minority acquisition weren't disclosed except that the stake was purchased from Actis, a private equity investor in solar markets, and Waichun Investment Fund.
Suntech also signed a 13-year silicon wafer supply agreement with a Shunda subsidiary on Tuesday for an annual supply of silicon wafers with total volume of seven gigawatts through 2020.
"We believe that these transactions accelerate Suntech's path to grid parity and significantly enhance Suntech's long-term cost competitiveness through better pricing and volume allocations," said Suntech chairman, Dr. Zhengrong Shi, adding that the investment was made possible by funds raised through a convertible notes offering.
Suntech was drawn to Shunda because of the proximity and capacity of the company's new polysilicon plant, currently under construction in Yangzhou, Jiangsu province, where it will begin producing solar-grade polysilicon.
Suntech said that although the silicon wafers supplied by Shunda this year won't be initially significant to overall supply , they replace expensive spot market silicon.
"With this long-term agreement, we are able to increase our silicon secured for 2009 by 50 megawatts to 800 megawatts of silicon with an average cost more than 20.0% below our average cost of silicon in 2007," Suntech said. Silicon is often measured by how many watts of power it can provide. One megawatt, which is equal to one million watts, can power about 1000 homes at any given time.
On Tuesday, Suntech Power Holdings bought a $98.0 million stake in Shunda Holdings, a China-based solar wafer manufacturer. Details of the minority acquisition weren't disclosed except that the stake was purchased from Actis, a private equity investor in solar markets, and Waichun Investment Fund.
Suntech also signed a 13-year silicon wafer supply agreement with a Shunda subsidiary on Tuesday for an annual supply of silicon wafers with total volume of seven gigawatts through 2020.
"We believe that these transactions accelerate Suntech's path to grid parity and significantly enhance Suntech's long-term cost competitiveness through better pricing and volume allocations," said Suntech chairman, Dr. Zhengrong Shi, adding that the investment was made possible by funds raised through a convertible notes offering.
Suntech was drawn to Shunda because of the proximity and capacity of the company's new polysilicon plant, currently under construction in Yangzhou, Jiangsu province, where it will begin producing solar-grade polysilicon.
Suntech said that although the silicon wafers supplied by Shunda this year won't be initially significant to overall supply , they replace expensive spot market silicon.
"With this long-term agreement, we are able to increase our silicon secured for 2009 by 50 megawatts to 800 megawatts of silicon with an average cost more than 20.0% below our average cost of silicon in 2007," Suntech said. Silicon is often measured by how many watts of power it can provide. One megawatt, which is equal to one million watts, can power about 1000 homes at any given time.
Tuesday, March 25, 2008
Suntech Signs Eight-Year Polysilicon Supply Agreement with DC Chemical
Suntech Becomes One of DC Chemical's Key Customers for Polysilicon
March 24, 2008: 08:00 AM EST
SAN FRANCISCO, March 24 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has signed a definitive eight-year polysilicon supply agreement with DC Chemical Co. Ltd., a leading multinational chemicals producer headquartered in Seoul, South Korea. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical's ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech's relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."
Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."
March 24, 2008: 08:00 AM EST
SAN FRANCISCO, March 24 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that it has signed a definitive eight-year polysilicon supply agreement with DC Chemical Co. Ltd., a leading multinational chemicals producer headquartered in Seoul, South Korea. Under the terms of the agreement, DC Chemical will supply Suntech specified annual volumes of polysilicon with a total value of approximately $631 million from 2009 to 2016.
Dr. Zhengrong Shi, Suntech's Chairman and Chief Executive Officer, stated, "We highly respect DC Chemical's ability to rapidly develop commercial scale production of polysilicon and contribute to the growth of the solar industry. Partnering with DC Chemical for high quality polysilicon will help to expand Suntech's relationship with companies in the South Korean solar industry as well as building our long-term supply pipeline and accelerating our path to grid parity solar."
Dr. Shi added, "The funds from our recent convertible senior notes offering have put us in a strong position to enter into large, long-term contracts such as this one with DC Chemical, which we believe will enable us to establish a strong foundation for a grid parity cost structure in the future. Suntech will continue to build relationships with respected upstream polysilicon producers with a similar view to achieving solar grid parity as early as possible."
Friday, December 28, 2007
Suntech Recognized for Exceptional Product Quality Control by China's National Quality Administration
Only Chinese Solar Company to Have Received Export Inspection Exemption
SAN FRANCISCO, Calif., Dec. 27 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP) one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Suntech has been granted National Export Inspection Exemption by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People's Republic of China. The export inspection exemption is China's highest honor awarded to companies that demonstrate exceptional internal product quality management and control. Suntech is the first Chinese solar company to receive this national recognition.
Since Suntech made the initial application for the export inspection exemption in January of 2006, numerous provincial and national quality representatives have conducted extensive reviews of Suntech's quality procedures which have led to ongoing quality process evolution and improvement. On December 2, 2007 Suntech successfully passed the final product quality control system inspection conducted by a team of specialists from the AQSIQ and fulfilled all the requirements for the inspection exemption. AQSIQ will continue to regularly inspect Suntech's quality procedures to ensure that this high quality standard is maintained. In addition to the Chinese export inspection exemption, Suntech has already received international product and quality standard accreditation including IEC61215: 1993, ISO 9001:2000, UL, TuV and CE.
"This national recognition reflects Suntech's steadfast commitment to exemplary quality control and our determination to exceed local and international quality standards," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "With well over 90% of our solar cells and modules sold and installed outside of China, in more than 15 countries world-wide, it is imperative that we ensure a consistent and reliable solar product that can generate electricity in a wide range of environments, applications and weather conditions. Product quality is one of the fundamental building blocks of this industry, and as Suntech progresses towards multi-gigawatt production, we will continue to take steps to improve the performance, quality and durability of our solar products and set benchmarks for the industry."
Suntech's Quality Control (QC) team consists of over 600 personnel. The QC system incorporates a comprehensive set of controls including sample testing of all materials procured, regular equipment maintenance, manufacturing environment control, quality process ownership, quick response hot spot identification and eradication, and product testing at all critical steps of the manufacturing process. In addition, Suntech is currently exploring a number of initiatives to further improve quality control including increased production automation and adoption of advanced product tracking technologies. Suntech offers industry leading product power output guarantees of 25 years.
Suntech has taken a leading role to improve product quality in the solar industry through regular consultation with industry bodies and discussion with peers that operate at all stages in the solar value chain. In December 2007 Suntech held the 2007 Chinese PV Industry International Competitiveness Forum on behalf of the China Renewable Energy Association. The Forum brought together a diverse group of Chinese and international solar professionals to discuss Chinese PV companies' participation in the international solar industry and collective initiatives to advance manufacturing techniques, improve industry standards and support ongoing solar innovation.
SAN FRANCISCO, Calif., Dec. 27 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP) one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Suntech has been granted National Export Inspection Exemption by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of the People's Republic of China. The export inspection exemption is China's highest honor awarded to companies that demonstrate exceptional internal product quality management and control. Suntech is the first Chinese solar company to receive this national recognition.
Since Suntech made the initial application for the export inspection exemption in January of 2006, numerous provincial and national quality representatives have conducted extensive reviews of Suntech's quality procedures which have led to ongoing quality process evolution and improvement. On December 2, 2007 Suntech successfully passed the final product quality control system inspection conducted by a team of specialists from the AQSIQ and fulfilled all the requirements for the inspection exemption. AQSIQ will continue to regularly inspect Suntech's quality procedures to ensure that this high quality standard is maintained. In addition to the Chinese export inspection exemption, Suntech has already received international product and quality standard accreditation including IEC61215: 1993, ISO 9001:2000, UL, TuV and CE.
"This national recognition reflects Suntech's steadfast commitment to exemplary quality control and our determination to exceed local and international quality standards," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "With well over 90% of our solar cells and modules sold and installed outside of China, in more than 15 countries world-wide, it is imperative that we ensure a consistent and reliable solar product that can generate electricity in a wide range of environments, applications and weather conditions. Product quality is one of the fundamental building blocks of this industry, and as Suntech progresses towards multi-gigawatt production, we will continue to take steps to improve the performance, quality and durability of our solar products and set benchmarks for the industry."
Suntech's Quality Control (QC) team consists of over 600 personnel. The QC system incorporates a comprehensive set of controls including sample testing of all materials procured, regular equipment maintenance, manufacturing environment control, quality process ownership, quick response hot spot identification and eradication, and product testing at all critical steps of the manufacturing process. In addition, Suntech is currently exploring a number of initiatives to further improve quality control including increased production automation and adoption of advanced product tracking technologies. Suntech offers industry leading product power output guarantees of 25 years.
Suntech has taken a leading role to improve product quality in the solar industry through regular consultation with industry bodies and discussion with peers that operate at all stages in the solar value chain. In December 2007 Suntech held the 2007 Chinese PV Industry International Competitiveness Forum on behalf of the China Renewable Energy Association. The Forum brought together a diverse group of Chinese and international solar professionals to discuss Chinese PV companies' participation in the international solar industry and collective initiatives to advance manufacturing techniques, improve industry standards and support ongoing solar innovation.
Saturday, October 20, 2007
Suntech Announces 510MW Wafer Supply Agreement with ReneSola
October 18, 2007: 08:00 AM EST
WUXI, China, Oct. 18 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced an agreement with ReneSola Ltd (AIM: SOLA), a leading manufacturer of wafers for the photovoltaic industry, to purchase 510MW of silicon wafers over a four-year period beginning in January 2008.
"We are very pleased to announce this expanded relationship with our long time supplier ReneSola, a rapidly growing producer of high quality silicon wafers," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "This agreement demonstrates Suntech's ability to continue to secure a high volume of silicon despite the industry shortage."
Dr. Shi added, "These silicon wafers will supplement our already healthy and diversified supply outlook for the next four years as well as enable us to increase our production of high efficiency solar cells and achieve our market expansion goals faster than we originally anticipated."
Mr. Xianshou Li, ReneSola's CEO, said: "We are excited to expand our long term strategic relationship with Suntech, one of the global leaders in the solar industry. We consider Suntech to be one of our long term cornerstone customers and hope to grow together successfully as we focus on rapidly expanding our capacity to deliver high quality wafers."
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .
WUXI, China, Oct. 18 /Xinhua-PRNewswire/ -- Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced an agreement with ReneSola Ltd (AIM: SOLA), a leading manufacturer of wafers for the photovoltaic industry, to purchase 510MW of silicon wafers over a four-year period beginning in January 2008.
"We are very pleased to announce this expanded relationship with our long time supplier ReneSola, a rapidly growing producer of high quality silicon wafers," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "This agreement demonstrates Suntech's ability to continue to secure a high volume of silicon despite the industry shortage."
Dr. Shi added, "These silicon wafers will supplement our already healthy and diversified supply outlook for the next four years as well as enable us to increase our production of high efficiency solar cells and achieve our market expansion goals faster than we originally anticipated."
Mr. Xianshou Li, ReneSola's CEO, said: "We are excited to expand our long term strategic relationship with Suntech, one of the global leaders in the solar industry. We consider Suntech to be one of our long term cornerstone customers and hope to grow together successfully as we focus on rapidly expanding our capacity to deliver high quality wafers."
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .
Tuesday, September 25, 2007
Akeena Solar Partners with Suntech to Manufacture New Solar Panel
Suntech to Deliver 10 to 14 MW of Akeena Solar's New Andalay Solar Panels
September 24, 2007: 04:05 PM EST
LOS GATOS, Calif. and SAN FRANCISCO, Sept. 24 /Xinhua-PRNewswire/ -- Akeena Solar, Inc. , a leading designer and installer of solar power systems, and Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Suntech has signed a letter of intent to manufacture Akeena Solar's Andalay solar panels. Under the terms of the agreement, Suntech will manufacture and deliver 10 to 14 Megawatts of Andalay solar panels to Akeena Solar during 2008.
Andalay is the brand name for Akeena Solar's patent-pending high performance solar panel systems. Unlike ordinary solar panels, Andalay panels feature built-in wiring, built-in grounding and built-in racking so the panels attach directly to the roof offering a smooth, flushed appearance. Andalay is the logical next step in the evolution of solar power technology, combining superior aesthetics with unparalleled reliability.
"Our engineers re-thought the concept of a solar panel so that the panels can be manufactured from the start to simplify installation, improve reliability and look like a glass skylight on the roof," said Barry Cinnamon, CEO of Akeena Solar, Inc. "We are proud to have Suntech as our manufacturing partner. And the improvements are not just in appearance and reliability; with Andalay we expect to reduce rooftop installation time by over 50 percent, requiring 70 percent fewer parts and 25 percent fewer rooftop attachment points."
"We are honored to have the opportunity to partner with Akeena Solar, in the manufacturing of Andalay", said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "Our ability to manufacture an aesthetically pleasing and unique module such as Andalay demonstrates the traction that we have gained by combining the core competence of Suntech's manufacturing skills with our MSK division's building integrated PV (BIPV) design skills. We believe Andalay will clearly deliver an attractive and reliable solution to end-users, while providing system integrators with a solution that can be installed faster and ultimately result in lower install costs than ordinary systems."
Andalay will be introduced at a press conference just prior to the opening reception of Solar Power 2007. Andalay panels are available from Akeena now, and will be available to select solar industry partners in 2008.
Suntech will display its full range of products available in the U.S. at the Solar Power 2007 Conference and Expo being held in Long Beach, CA. For additional information, visit the Suntech exhibit booth in Hall B, Booth 364 at the Long Beach Convention and Entertainment Center.
About Akeena Solar, Inc.
Founded in 2001, Akeena Solar's philosophy is simple: We believe producing clean electricity directly from the sun is the right thing to do for our environment and economy. Akeena Solar has grown to become one of the largest national installer of residential and small commercial solar power systems in the United States, serving customers directly in California, New Jersey, New York, Connecticut and Pennsylvania. For more information, visit Akeena Solar's website at http://www.akeena.net .
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .
September 24, 2007: 04:05 PM EST
LOS GATOS, Calif. and SAN FRANCISCO, Sept. 24 /Xinhua-PRNewswire/ -- Akeena Solar, Inc. , a leading designer and installer of solar power systems, and Suntech Power Holdings Co., Ltd. , one of the world's leading manufacturers of photovoltaic (PV) cells and modules, today announced that Suntech has signed a letter of intent to manufacture Akeena Solar's Andalay solar panels. Under the terms of the agreement, Suntech will manufacture and deliver 10 to 14 Megawatts of Andalay solar panels to Akeena Solar during 2008.
Andalay is the brand name for Akeena Solar's patent-pending high performance solar panel systems. Unlike ordinary solar panels, Andalay panels feature built-in wiring, built-in grounding and built-in racking so the panels attach directly to the roof offering a smooth, flushed appearance. Andalay is the logical next step in the evolution of solar power technology, combining superior aesthetics with unparalleled reliability.
"Our engineers re-thought the concept of a solar panel so that the panels can be manufactured from the start to simplify installation, improve reliability and look like a glass skylight on the roof," said Barry Cinnamon, CEO of Akeena Solar, Inc. "We are proud to have Suntech as our manufacturing partner. And the improvements are not just in appearance and reliability; with Andalay we expect to reduce rooftop installation time by over 50 percent, requiring 70 percent fewer parts and 25 percent fewer rooftop attachment points."
"We are honored to have the opportunity to partner with Akeena Solar, in the manufacturing of Andalay", said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "Our ability to manufacture an aesthetically pleasing and unique module such as Andalay demonstrates the traction that we have gained by combining the core competence of Suntech's manufacturing skills with our MSK division's building integrated PV (BIPV) design skills. We believe Andalay will clearly deliver an attractive and reliable solution to end-users, while providing system integrators with a solution that can be installed faster and ultimately result in lower install costs than ordinary systems."
Andalay will be introduced at a press conference just prior to the opening reception of Solar Power 2007. Andalay panels are available from Akeena now, and will be available to select solar industry partners in 2008.
Suntech will display its full range of products available in the U.S. at the Solar Power 2007 Conference and Expo being held in Long Beach, CA. For additional information, visit the Suntech exhibit booth in Hall B, Booth 364 at the Long Beach Convention and Entertainment Center.
About Akeena Solar, Inc.
Founded in 2001, Akeena Solar's philosophy is simple: We believe producing clean electricity directly from the sun is the right thing to do for our environment and economy. Akeena Solar has grown to become one of the largest national installer of residential and small commercial solar power systems in the United States, serving customers directly in California, New Jersey, New York, Connecticut and Pennsylvania. For more information, visit Akeena Solar's website at http://www.akeena.net .
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech's customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .
Thursday, August 30, 2007
China's Suntech eyes plants in U.S. and Europe
Wed Aug 29, 2007 9:44AM EDT
By Leonard Anderson
SAN FRANCISCO (Reuters) - Suntech Power Holdings Co Ltd (STP.N: Quote, Profile, Research) expects to build manufacturing plants in the United States and Europe to serve growing demand for solar energy panels, a top official at the China-based company said.
"We are exploring the opportunity to have strategic manufacturing outside of China," Steven Chan, chief strategy officer for Suntech, said in a telephone interview late on Wednesday.
"Europe and the U.S. essentially are two key markets. We are looking at places, but we probably shouldn't break it out at this point," Chan said, adding that Suntech expects to identify manufacturing locations within two years. Its European market includes Germany, Spain, France and Italy.
Suntech will grow from about 480 megawatts of production capacity at the end of this year to more than 1,000 megawatts by the end of 2010, he said.
The company estimates it will be the world's second or third largest producer of solar power cells by the end of 2007.
Chan reaffirmed Suntech's third-quarter production target of 94 megawatts to 96 megawatts and about 325 megawatts of total production for the year.
Suntech has contracted this year's production and also signed contracts to deliver more than 150 megawatts for 2008 "so it's a very, very bullish environment for sales," Chan said. "Demand is higher than the supply of photovoltaic modules through 2009."
The company has not set production guidance for 2008, but Chan said it can add about 150 megawatts a year on a conservative basis.
Tight supplies of polysilicon, a key component of solar systems, have stalled panel production for some small companies, but analysts say more silicon refining will begin to come on line in 2008.
Chan sees improving silicon supplies for the solar industry in 2009.
More silicon and a potential reduction in product costs will help China adopt solar power within two-to-four years to feed the nation's ravenous appetite for new power generation, he said.
"I hear they are adding a new coal or gas-fired plant each week, that's 500 megawatts of additional generating capacity a week and a lot of air pollution."
Suntech Chairman and Chief Executive Zhengrong Shi has adopted former U.S. Vice President Al Gore's climate crusade and is encouraging Chinese political leaders and others to attack global warming and climate change, Chan said.
"He is saying you guys need to start acting soon."
By Leonard Anderson
SAN FRANCISCO (Reuters) - Suntech Power Holdings Co Ltd (STP.N: Quote, Profile, Research) expects to build manufacturing plants in the United States and Europe to serve growing demand for solar energy panels, a top official at the China-based company said.
"We are exploring the opportunity to have strategic manufacturing outside of China," Steven Chan, chief strategy officer for Suntech, said in a telephone interview late on Wednesday.
"Europe and the U.S. essentially are two key markets. We are looking at places, but we probably shouldn't break it out at this point," Chan said, adding that Suntech expects to identify manufacturing locations within two years. Its European market includes Germany, Spain, France and Italy.
Suntech will grow from about 480 megawatts of production capacity at the end of this year to more than 1,000 megawatts by the end of 2010, he said.
The company estimates it will be the world's second or third largest producer of solar power cells by the end of 2007.
Chan reaffirmed Suntech's third-quarter production target of 94 megawatts to 96 megawatts and about 325 megawatts of total production for the year.
Suntech has contracted this year's production and also signed contracts to deliver more than 150 megawatts for 2008 "so it's a very, very bullish environment for sales," Chan said. "Demand is higher than the supply of photovoltaic modules through 2009."
The company has not set production guidance for 2008, but Chan said it can add about 150 megawatts a year on a conservative basis.
Tight supplies of polysilicon, a key component of solar systems, have stalled panel production for some small companies, but analysts say more silicon refining will begin to come on line in 2008.
Chan sees improving silicon supplies for the solar industry in 2009.
More silicon and a potential reduction in product costs will help China adopt solar power within two-to-four years to feed the nation's ravenous appetite for new power generation, he said.
"I hear they are adding a new coal or gas-fired plant each week, that's 500 megawatts of additional generating capacity a week and a lot of air pollution."
Suntech Chairman and Chief Executive Zhengrong Shi has adopted former U.S. Vice President Al Gore's climate crusade and is encouraging Chinese political leaders and others to attack global warming and climate change, Chan said.
"He is saying you guys need to start acting soon."
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