Sat, May 10, 2008 - Page 12 News List

Motech shares jump after news of big Indian order

By Lisa Wang  /  STAFF REPORTER

Shares of the nation's biggest solar cell maker Motech Industries Inc (茂迪) jumped 1.45 percent yesterday after Indian solar module supplier Solar Semiconductor Ltd said it had ordered 120 megawatts of solar cells from the company.

Motech Industries stock price advanced NT$4 to NT$279, defying the benchmark TAIEX index’s decline of 0.84 percent yesterday. Local rival E-Ton Solar Tech Co Ltd (益通光能) inched up 0.26 percent to NT$393.

Solar Semiconductor said Motech Industries would be supplying approximately 120 megawatts of solar cells based on a multi-year initial agreement, the Indian company said in a statement released on Wednesday.

The order may bring NT$12 billion (US$391 million) in revenues for Motech Industries as each megawatt will generate NT$100 million in revenue based on the general calculation of most local solar cell makers.

“We are happy to be associated with Solar Semiconductor and to support their growth strategy. We are pleased that Solar Semiconductor is looking to Motech Industries in its quest for the highest quality cells,” Motech Industries chief executive Simon Tsuo (左元淮) said in the statement.

“Beyond being a direct cell supplier, Motech Industries is committed to exploring all cooperative arrangements to support our aggressive growth plans,” said Hari Surapaneni, chief executive officer of Solar Semiconductor.

Under the agreement, Motech Industries will also cooperate with Solar Semiconductor to explore processing wafers for conversion into cells in order to meet demand and to ensure a steady supply of cells, according to the statement.

But, Motech Industries yesterday said it is still in talks with Solar Semiconductor on cooperation and will release details after they sign formal agreements, according to a filing to the Taiwan Stock Exchange.

The company’s first quarter net income plunged 65 percent to NT$269 million from a year ago because of huge foreign exchange losses of NT$400 million. Revenues expanded 48 percent year-on-year to NT$4.9 billion.

Motech Industries said it planned to spend NT$2.43 billion on expanding its annual output to 280 megawatts of solar cells, up around 60 percent from 176 megawatts last year.

The company said it planned to further boost its capacity to 400 megawatts next year.

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