Wed, Nov 07, 2007 - Page 12 News List

Gintech denies alliance for Spain power-plant project

EXPANSION The newly listed company said the project was under consideration, but rebutted reports that it had teamed up with BES Engineering and Solaria Energy

By Jessie Ho  /  STAFF REPORTER

Solar cell maker Gintech Energy Corp (昱晶能源) said yesterday that it was considering building a solar power plant in Europe as part of its development strategy.

However, the company denied a report in the Chinese-language Economic Daily News that it had teamed up with BES Engineering Corp (中華工程), a major builder of industrial parks for the government, and Solaria Energy and Environmental SA, the second-largest solar panel maker in Spain, to jointly bid for a solar power-plant project in Spain.

Citing unnamed company officials, the report said that under the alliance, Gintech would supply photovoltaic cell products, while Solaria would assemble the cells and BES construct the plant.

"Bidding for the solar power plant is one of the strategies under consideration," Gintech said in a filing to the Taiwan Stock Exchange yesterday.

"However, we have not formed an alliance with any contractor so far," the company said.

Demand for solar power plants is strong and Gintech, aided by sufficient supply from US silicon wafer producer MEMC Electronic Materials Inc, is a popular supplier for the plants, the report said.

The market for solar power is estimated to hit US$5.2 trillion after 2012, when costs of generating electricity through solar power will have dropped significantly from current levels, the report said, citing anonymous officials at Gintech.

Founded in August 2005 with light-emitting-diode manufacturer Everlight Electronics Co (億光電子) and Taiwan Styrene Monomer Corp (台苯) as major shareholders, Gintech is emerging as a strong player in the solar cell manufacturing industry.

Gintech has an annual capacity of 60 megawatts and is expected to add another 480 megawatts after its plant at the Hsinchu Science Park is completed by the end of the year.

The company debuted on the Taiwan Stock Exchange last Friday and outpaced its peers to become the highest-priced solar cell stock in the local market.

Shares of Gintech slid 1.23 percent to close at NT$400 (US$12.35) yesterday, while those of its larger rival, Motech Industries Inc (茂迪), were unchanged at NT$335, and E-ton Solar Tech Co's (益通光能) edged down 1.62 percent to NT$364.

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