Suntech intends to promote its U.S. solar-cell factory to double production capacity

Suntech Power plans to the U.S. solar cell plant capacity doubled to 300MW

* Polysilicon prices little effect on the company, the cost of silicon lock standing orders

* U.S. survey of 301 energy industry Huaqing Jie little real impact


Of Li Ran


Reuters, Beijing, November 22 - ---- World's second largest manufacturer of solar cells - Suntech Power (STP.N: Quote) Gong, director of project development into the school, said the United States early in October Suntech solar cell production plant Planning in the "near future" or the production capacity from current 150MW (megawatts) doubled to 300MW.

He told Reuters in an interview on Friday and said the current price of polysilicon little effect on Suntech Power for its long-term supply of silicon materials order price is relatively stable; while the U.S. clean energy policy for China launched 301 investigations, of Suntech power and even the actual impact of the industry or not.

"The future exchange rates and international trade, policies that affect our international markets will be an important factor in the production of forward team and also to respond more quickly and meet market demand." He talked about Suntech opened in Arizona The factory said.

Suntech Power last week said it has surpassed the United States SunPower (SPWRA.O: Quote) to become North America's largest supplier of solar cells. the U.S. market, although much smaller than the global PV superpower - in Germany, but is expected to New installed capacity of solar power coming into the leading countries.

Suntech announced third quarter results last week, its quarter net income of 3,310 million U.S. dollars, per unit of American Depositary Hop (ADS) surplus of $ 0.18, less than market expectations, rising costs for its silicon sales prices.

The current global PV industry, the rapid expansion of production capacity, has caused analysts to caution. Last week Credit Suisse downgraded the U.S. PV industry to "consistent with the broader market" means there is an oversupply of its suspected.

UBS to Suntech by the $ 13 price target cut to $ 12, as Buy; Jefferies its target price from $ 11 down to 10 dollars, the rating for the holding; Susquehanna will be the rating as neutral.

Suntech Power rose 0.81% on Friday, at $ 7.48; but the whole week down 11.7% in total.


** Cost of silicon long single lock **

Gong Xue-Jin said Suntech's silicon supply locked price slightly higher than long single $ 50 per kilogram, "which makes us less vulnerable to short-term fluctuations in supply and demand." According to its introduction, Suntech Power is currently working with an international silicon material supplies enter into an 10-year long-term orders, but delivery will be phased according to market adjustments.

After the price of polysilicon in 2008 about 500 U.S. dollars / kg of record highs this year after the first half fell to lows around $ 50, and then pick up as the world PV industry, polysilicon prices soaring, is still per kg hovering around 100 dollars.

Unlike China's Yingli Green Energy Holdings (YGE.N: Quote) and other from the start to take the vertical integration chain of solar companies, Suntech main focus is still on the cells, modules and systems and other downstream links, the current The most upstream part of the silicon material only in China's Qinghai Province to set up a production capacity of 3,000 tons of polysilicon plant.

And Suntech Power last week announced plans to spend about 127 million U.S. dollars in China reached a total of 375MW M a polysilicon ingots and slices 100% stake in production and fourth quarter can be put into operation after the merger. Ingots and slice is connected to the upstream material preparation and downstream silicon solar cell manufacturing the intermediate links