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Green Energy to double solar wafer output

Green Energy Technology Inc (綠能科技), the nation's top solar silicon wafer maker, said yesterday it intended to double its output this year to 200 megawatts to meet growing global demand, aided by increasing government subsidies for recreational energy.

Green Energy plans to raise NT$1.73 billion (US$53.2 million) to fund the construction of a new plant by offering 10.12 million new common shares when it starts trading on the nation's main bourse tomorrow, a month later than initially planned.

The company is 68 percent-owned by a semiconductor subsidiary of home appliance giant, Tatung Co (大同).

Shares of Green Energy plunged 10.2 percent to NT$149 on the Emerging Securities Market yesterday.

"We do not think a global economic recession will have a negative impact on the solar industry, as more countries, especially in Europe, are launching more subsidy programs," Green Energy president Lin Hur-lon (林和龍) said.

Green Energy's net profit grew 18 percent to NT$635 million last year, from NT$539 million in 2006. Gross margin stood at about 20 percent in the fourth quarter of last year.

"Demand is still quite strong this year ... The gross margin is sustainable," Lin said. "Government subsidy plans, rather than macroecononomics, will have a substantial impact on the uptake of solar cells."

Lin said southern European countries were more aggressive in pushing for recreational energy programs. This includes Spain, which is expected to launch a new solar energy subsidy program in September.

Green Energy, whose customers include MEMC Electronic Materials Inc and E-Ton Solar Tech Co (益通光能), is expected to double its net income to NT$1.33 billion this year, Fubon Securities Co (富邦證券) said in a report.

Revenues are expected to surge 88 percent to NT$9.53 billion from NT$5.05 billion last year, the securities house said.

Production of solar cells is forecast to jump 54 percent to 6,100 megawatt this year and grow another 66 percent to 10,200 megawatt next year, in 2009, <> said.

Lin said the company has sufficient polysilicon supply to reach its goal of doubling production to 200 megawatt.

Green Energy plans to double capital spending to more than NT$3 billion this year, mainly to support construction of a new 8.5-generation plant, Lin said.

It plans to ramp up the new plant, which will have an annual production capacity of 30 megawatt, in the final quarter of this year.
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