LoF Solar venturing into manufacturing

Local solar cell supplier LoF Solar Corp (樂福) signed an agreement yesterday with German solar cell equipment supplier Centrotherm Photovoltaics AG to build its first solar cell production line to further tap into this rapidly expanding US$10 billion market.

Set up earlier this year, LoF was a spinoff of the solar cell division of local chip designer Integrated Digital Technologies Inc (劍揚), in which local computer memory chipmaker ProMOS Technologies Inc (茂德科技) holds a 10 percent stake.

With the equipment scheduled to arrive by the end of the year, "we expect to start making solar cells in-house next year to meet growing customer demand," said LoF founder and chairman Hwang Huey-liang (黃惠良), a well-known figure in the local solar business.

LoF currently farms out production to local solar cell makers, including ProMOS's parent company, Mosel Vitelic Inc (茂矽). It plans to supply 20 megawatt to customers this year via its production partners.

LoF expects to ramp up production in the first quarter of next year, with annual production reaching 30 megawatt, and plans to expand to 555 megawatt in the next five years, Hwang said.

Centrotherm also supplies solar equipment to other local players, including Mosel and Neo Solar Power Corp (新日光).

To fund the first plant and buy raw materials, LoF plans to sell new shares to expand its capital from NT$20.85 million now to NT$2.7 billion by the end of the year, Hwang said.

To raise more funds for operation, LoF plans to launch an initial public offering on the nation's Emerging Stock Market (興櫃市場) in 2010, Hwang said, adding that the firm was also considering a US listing.

"We are glad some major foreign investment banks and leading solar cell makers in Taiwan have expressed an interest in LoF," he said.