Neo Solar Power secures solar module order worth NT$5 billion
Nuying Huang, Taipei; Esther Lam,
Source: DIGITIMES, Monday 15 October 2007
http://www.digitimes.com/bits_chips/a20071015PD203.html
Neo Solar Power recently announced that it has secured a three-year order worth NT$4.4 billion (US$134.6 million) with Netherlands-based Scheuten Solar for solar cells. The total order amount from Scheuten is to reach NT$5 billion, the company added. Neo Solar indicated that the deal with Scheuten will be effective from 2008. Since both parties already have a partnership underway, Neo Solar will land a total of NT$5 billion-worth of orders over the next three years. Based on present solar cell prices, industry players estimate that the deal will be equivalent to 50 peak megawatt (MWp) of solar cells.
Since Neo Solar has long-established ties with Scheuten, the solar system maker inked the long-term contract with Neo Solar after realizing the aggressive expansion plans of the company, said Neo Solar. Neo Solar updated that it would triple its capacity from the present 30MWp to 90MWp in early 2008, and increase to 210MWp in late 2008. Total capacity is set to surpass 570MWp in 2011, the company detailed.
A Chinese-language Economic Daily News (EDN) report wrote that Neo Solar is preparing production at its second line with capacity about to be available in November. A third line is scheduled to be installed during year-end 2007 with production to follow in early 2008.
Industry sources from Neo Solar highlighted that the company broke Taiwan industry records in terms of its volume production schedule. The company started volume production from October 2006 and achieved profitability a year after establishment on an utilization rate as high as 120%. The company posted an earnings per share (EPS) of NT$3.5 through the third quarter of 2007.
Starting its business as a flat glass maker, Scheuten extended its presence to solar modules and systems from 2002. The company currently houses a manufacturing capacity of 50MWp. Besides downstream photovoltaic (PV) applications production, Scheuten also runs its own silicon factory. It is also planning for thin-film solar cell production in 2008.
On a separate note, Neo Solar is said to be planning to apply for bank loan later in the year and fund raising via a rights issue during early 2008, according to the EDN report.