By Emma Graham-Harrison
BEIJING (Reuters) - China's top maker of solar water heaters, Himin Solar Energy Group, expects earnings to grow 25 percent to around 2.5 billion yuan ($333.2 million) this year, but said raw material costs and a lack of government support are denting profits.
The solar heaters are the only form of renewable energy competitive in China without any subsidies, and have edged out gas and electric-powered heaters to take around 20 percent of the urban market, Himin's President Huang Ming, told the Reuters Global Environment Summit on Wednesday.
China already accounts for over three-quarters of world output of the systems which use the sun's energy to heat water for daily use, rather than to generate electricity as better known photovoltaic (PV) cells do.
Beijing has pledged to get 15 percent of its energy from renewable sources by 2020 and aims to more than triple the amount of installed solar water heating capacity by the same date, to reach 300 million square meters, from just 80 million in 2005.
Production this year is up 25 percent, and could continue to grow at that rate for the next five years, with more backing from Beijing, Huang said.
"The market is still growing and I think the government is going to bring out more (supportive) policies," he said.
But the company founder, who began his career as an oil engineer before deciding renewables had more future, said the government is not yet doing enough, particularly in cities.
It is expensive and challenging to install the heaters on the higher buildings now springing up in wealthier areas, and some developers are also resisting buying the systems of roof-top pipes and tanks on aesthetic grounds, he added.
So the firm is targeting bigger users like hospitals, schools and hotels, which rarely consider solar water heating -- and also expects rural buyers to account for a bigger share of earnings as their incomes rise.
At present, only 10 percent of sales are in rural areas, but in five years, that is likely to rise to around 30 percent.
"They need hot water not only for living, but also for rearing livestock. It is particularly needed with cows," he said.
LOW QUALITY RIVALS
Despite the rise in sales, profits for 2007 are expected to be stable with last year at around 200 million yuan, in part because of the rising price of stainless steel and copper.
Huang estimates his company has around 15 percent of a very fragmented market, which they aim to increase to 20 percent within five years.
There are 3,000 to 4,000 firms in the sector because entry costs are low, some using such poor quality designs that their raw material costs are up to 80 percent below Himin's.
"The government should improve standards to guarantee quality, and improve supervision" Huang said. "If people buy low quality machines they break more easily, so people are more likely to complain, start saying that solar power is no good."
The company also produces a small amount of solar-panel powered goods, mostly lights, which account for around five percent of turnover and are particularly attractive for parks and remote areas as they require no underground cabling, he said.
LISTING, EXPORT PLANS
Himin plans to list on the Chinese stock exchange within 2 to 3 years, Huang said, and is currently in talks with potential investors which it hopes to wrap up in the next six months.
Almost all their sales are currently into the Chinese market, and although Huang is interested in foreign sales, he said Himin plans to go abroad only after researching markets where a different type of system -- based on flat panels -- dominates, and preparing a sales and support system.
"Its a matter of 5 years or so...we need strong technology but also a good grasp of language and culture," he said.
"I want it to be perfect, I don't want people to say China can't even make hot water heaters," he added.
At present they are focusing research efforts on perfecting systems that can be used on the balconies or walls of high-rise buildings, although they do have some on the market already, and bringing down the cost of all their models.
"It may be over-ambitious, but we would like to try and push gas and electric powered heaters out of the market in 10 to 15 years...we invite them to produce solar heaters instead," he said with a grin.
Thursday, October 4, 2007
Wednesday, October 3, 2007
Trina Solar Announces Management Changes
October 02, 2007: 09:29 AM EST
CHANGZHOU, China, Oct. 2 /PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules founded in 1997, announced today the following management changes at the Company:
Mr. Anthony Chia has been appointed as Vice President of Quality. Mr. Chia has more than 21 years of experience in quality management, involving the introduction and implementation of numerous quality control systems, including 6-Sigma, TL9000, TS16949, ISO2000, ISO14000, UL and TUV RoHS. Mr. Chia reports to Sean Tzou, Trina Solar's Chief Operating Officer.
Prior to joining Trina Solar, Mr. Chia served as Director of Service and Quality for SANMINA-SCI and as Senior Manager of Quality Assurance at Motorola Singapore and China. Mr. Chia holds an MBA from National University of Singapore.
Mr. Dave Seburn has been appointed as Vice President, Polysilicon. Mr. Seburn is responsible for evaluating potential upstream investments in polysilicon production, including road map development for upstream investments and implementation oversight of related projects. Mr. Seburn reports directly to Jifan Gao, Trina Solar's Chief Executive Officer.
Mr. Seburn comes to Trina Solar after ten years of experience at REC Silicon, where he last served as Vice President of Operations. During his tenure, Mr. Seburn lead oversight of both silane and polysilicon manufacturing plants and facilitated process and organizational changes that optimized productivity at both plants. Mr. Seburn holds an M.S. degree in Chemical Engineering from the University of Houston.
Mr. Mohan Naranayan, Vice President of Technology, left the Company on September 30, 2007 due to personal reasons.
"We are pleased and excited to welcome such talented individuals as Mr. Chia and Mr. Seburn to the Trina Solar team," said Mr. Jifan Gao, Trina Solar's Chairman and CEO. "Both gentlemen will greatly strengthen our resources in quality control, long-term cost reduction and raw material procurement as we continue to pursue a leading position in the global solar PV market."
"At the same time, we regret to announce the departure of Mr. Naranayan as Vice President of Technology. We recognize his significant contributions to our growth at Trina Solar and we wish him the best in his future endeavors," said Mr. Gao.
About Trina Solar Limited:
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufactures that has developed a vertically integrated business model from the production of monocrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December, 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com
CHANGZHOU, China, Oct. 2 /PRNewswire-FirstCall/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules founded in 1997, announced today the following management changes at the Company:
Mr. Anthony Chia has been appointed as Vice President of Quality. Mr. Chia has more than 21 years of experience in quality management, involving the introduction and implementation of numerous quality control systems, including 6-Sigma, TL9000, TS16949, ISO2000, ISO14000, UL and TUV RoHS. Mr. Chia reports to Sean Tzou, Trina Solar's Chief Operating Officer.
Prior to joining Trina Solar, Mr. Chia served as Director of Service and Quality for SANMINA-SCI and as Senior Manager of Quality Assurance at Motorola Singapore and China. Mr. Chia holds an MBA from National University of Singapore.
Mr. Dave Seburn has been appointed as Vice President, Polysilicon. Mr. Seburn is responsible for evaluating potential upstream investments in polysilicon production, including road map development for upstream investments and implementation oversight of related projects. Mr. Seburn reports directly to Jifan Gao, Trina Solar's Chief Executive Officer.
Mr. Seburn comes to Trina Solar after ten years of experience at REC Silicon, where he last served as Vice President of Operations. During his tenure, Mr. Seburn lead oversight of both silane and polysilicon manufacturing plants and facilitated process and organizational changes that optimized productivity at both plants. Mr. Seburn holds an M.S. degree in Chemical Engineering from the University of Houston.
Mr. Mohan Naranayan, Vice President of Technology, left the Company on September 30, 2007 due to personal reasons.
"We are pleased and excited to welcome such talented individuals as Mr. Chia and Mr. Seburn to the Trina Solar team," said Mr. Jifan Gao, Trina Solar's Chairman and CEO. "Both gentlemen will greatly strengthen our resources in quality control, long-term cost reduction and raw material procurement as we continue to pursue a leading position in the global solar PV market."
"At the same time, we regret to announce the departure of Mr. Naranayan as Vice President of Technology. We recognize his significant contributions to our growth at Trina Solar and we wish him the best in his future endeavors," said Mr. Gao.
About Trina Solar Limited:
Trina Solar Limited , through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufactures that has developed a vertically integrated business model from the production of monocrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. Trina Solar successfully completed its initial public offering on the New York Stock Exchange in December, 2006 and its ADSs are traded under the ticker symbol TSL. For further information, please visit Trina Solar's website at http://www.trinasolar.com
Canadian Solar Rises on U.S. Contract
NEW YORK - Shares of Canadian Solar Inc. rose Tuesday, as the solar cell maker signed a contract that may have inspired investor optimism about the company's chances for success in the U.S.
Before trading began, the company said it agreed to sell solar modules to a Massachusetts company, American Capital Energy. Financial terms were not disclosed, and the modules will be used to make a fairly small system. Under the project, a commercial roof space will be converted into a private power generation site featuring a 300 Kilowatt grid-connected solar power system.
While the deal is not large, Deutsche Bank analyst Stephen O'Rourke said the contract is significant because investors have such high expectations for the U.S. solar market.
"It's all about positioning for the market," he said in a telephone interview. "It's not a huge system, but it is a footprint in the U.S."
Shares added 60 cents, or 6.3 percent, to $10.14. Trading was more than four times heavier than normal.
Solar stocks have been strong in recent months, but Canadian Solar has missed out on those gains: Shares have lost more than a third of their value since they began trading in November.
O'Rourke said Tuesday's deal could be a step toward proving the company is on the right track, overcoming its problems with weak margins.
Before trading began, the company said it agreed to sell solar modules to a Massachusetts company, American Capital Energy. Financial terms were not disclosed, and the modules will be used to make a fairly small system. Under the project, a commercial roof space will be converted into a private power generation site featuring a 300 Kilowatt grid-connected solar power system.
While the deal is not large, Deutsche Bank analyst Stephen O'Rourke said the contract is significant because investors have such high expectations for the U.S. solar market.
"It's all about positioning for the market," he said in a telephone interview. "It's not a huge system, but it is a footprint in the U.S."
Shares added 60 cents, or 6.3 percent, to $10.14. Trading was more than four times heavier than normal.
Solar stocks have been strong in recent months, but Canadian Solar has missed out on those gains: Shares have lost more than a third of their value since they began trading in November.
O'Rourke said Tuesday's deal could be a step toward proving the company is on the right track, overcoming its problems with weak margins.
Sunday, September 30, 2007
Yuanchang Group signed amorphous silicon thin film solar cell project investment agreement
Yunnan Dali local government signed the amorphous silicon thin film solar cell project investment agreement with Yuanchang Group on September 25th.
The total investment of the project is USD 500 million. The production capacity of the first phase project is 40MW, and the annual sales income from the first phase project will be about USD 80 million. And the annual sales income from the whole project will be about USD 240 million.
The total investment of the project is USD 500 million. The production capacity of the first phase project is 40MW, and the annual sales income from the first phase project will be about USD 80 million. And the annual sales income from the whole project will be about USD 240 million.
Saturday, September 29, 2007
Yingli Green Energy Contributes Additional Capital to Its Joint Venture
BAODING, China--(BUSINESS WIRE)--Yingli Green Energy Holding Company Limited (NYSE: YGE) ("Yingli Green Energy" or the "Company"), a leading vertically integrated photovoltaic ("PV") product manufacturer in China, today announced that it further amended the joint venture contract (the "Amendment") with Baoding Tianwei Baobian Electric Co., Ltd. ("Tianwei Baobian") under which Yingli Green Energy will contribute additional capital of RMB1,750,840,000 billion (equivalent of US$236.6 million at the exchange rate of RMB7.40 to US$1.00, as previously agreed upon by the Company and Tianwei Baobian) to its principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd. ("Tianwei Yingli").
As a result of the Amendment and Ying Green Energy's additional capital contribution upon approval of the relevant PRC governmental authorities:
1. The registered capital of Tianwei Yingli will increase from RMB1,624,380,000 to RMB3,375,220,000;
2. Yingli Green Energy's equity interest in Tianwei Yingli will increase from 70.11% to 74.01%; and
3. The equity interest of Tianwei Baobian in Tianwei Yingli will correspondingly decrease from 29.89% to 25.99%.
As an intermediary step in anticipation of this additional capital contribution, the Company had advanced part of the proceeds it received from its initial public offering completed in June 2007, in an aggregate amount of US$230.0 million, into Tianwei Yingli in the form of shareholder loans, which will be converted into part of the additional capital contribution contemplated under the Amendment as described above. The balance of the additional capital contribution will be made by the Company within 60 days of approval by the relevant PRC governmental authorities.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.
As a result of the Amendment and Ying Green Energy's additional capital contribution upon approval of the relevant PRC governmental authorities:
1. The registered capital of Tianwei Yingli will increase from RMB1,624,380,000 to RMB3,375,220,000;
2. Yingli Green Energy's equity interest in Tianwei Yingli will increase from 70.11% to 74.01%; and
3. The equity interest of Tianwei Baobian in Tianwei Yingli will correspondingly decrease from 29.89% to 25.99%.
As an intermediary step in anticipation of this additional capital contribution, the Company had advanced part of the proceeds it received from its initial public offering completed in June 2007, in an aggregate amount of US$230.0 million, into Tianwei Yingli in the form of shareholder loans, which will be converted into part of the additional capital contribution contemplated under the Amendment as described above. The balance of the additional capital contribution will be made by the Company within 60 days of approval by the relevant PRC governmental authorities.
About Yingli Green Energy
Yingli Green Energy Holding Company Limited ("Yingli Green Energy") is one of the leading vertically integrated photovoltaic ("PV") product manufacturers in China. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or those that operate on a stand-alone basis. With 200 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in China. Additionally, Yingli Green Energy is one of the limited number of large-scale PV companies in China to have adopted vertical integration as its business model. Yingli Green Energy currently plans to gradually expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 400 MW by the end of 2008 and to 600 megawatts by 2010. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, China and the United States.
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