Wed, Dec 22, 2010 - Page 12 News List

Neo Solar signs supply deal with China’s ET Solar

LOOKING AHEAD:Shares in Neo Solar rose 1.12 percent yesterday ahead of news about the contract, but have fallen 10.77 percent this year

By Kevin Chen  /  Staff reporter

Local photovoltaic (PV) cell maker Neo Solar Power Corp (新日光) yesterday signed a three-year supply agreement with China’s ET Solar Group (中盛光電), beginning next year, the Hsinchu-based company said in a statement.

Neo Solar, the nation’s third-largest solar-cell maker by market value, after Motech Industries Inc (茂迪) and Gintech Energy Corp (昱晶), said it would supply 370 megawatts of cells to the Nanjing-headquartered company over the next three years, the statement said.

Neo Solar is forecast to chun out 500 megawatts of cells this year. Chairman Quincy Lin (林坤禧) announced on Dec. 8 that the company was aiming to ship 1 gigawatt of cells next year.

The latest supply contract followed another deal the company inked on Nov. 24 to supply solar cells to Canadian solar module maker Day4 Energy Inc for the whole of next year.

It also came after Neo Solar secured wafer and poly silicon supplies from South Korea’s Osung LST Co and Hankook Silicon Co last month, as well as wafer materials from the Hong Kong-listed GCL-Poly Energy Holdings Ltd (保利協鑫能源控股) in October.

“Recently, we have been securing material supplies with upstream manufacturers by consolidating agreements to actively strengthen our support for the clients’ growth,” Lin said in the statement yesterday.

“We will continue to supply high performance PV cells to ET Solar to expand sales for both parties and advance in global market share,” Lin said.

Shares of Neo Solar rose 1.12 percent to NT$72.1 yesterday in Taipei trading ahead of news about the new contract.

So far this year the stock has dropped 10.77 percent, underperforming an increase of 7.81 percent on the TAIEX, as investors have been worried about pricing and profit margin prospects for next year.

Motech rose 1.38 percent to NT$110, while Gintech was up 1.08 percent to NT$84.1 yesterday, data from the Taiwan Stock Exchange showed.

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