Sat, Jun 01, 2013 - Page 13 News List

Neo Solar Power secures modules order

By Lisa Wang  /  Staff reporter

Neo Solar Power Corp (新日光) yesterday said it recently secured an order to supply 300-megawatt solar modules to a client, thanks to positive synergy from its acquisition of local rival DelSolar Co (旺能光電).

The merger between Neo Solar and DelSolar was officially completed yesterday.

The acquisition has boosted Neo Solar’s solar cell capacity to 2 gigawatts a year, making it the nation’s biggest solar cell maker, overtaking Motech Industries Inc (茂迪).

The deal has also pushed up Neo Solar’s global ranking to No. 2, the company said.

“The merger has increased our production scale. As a result, we can serve more [big] customers with our annual capacity of 2 gigawatts,” Neo Solar chairman Quincy Lin (林坤禧) said in a statement.

“Neo Solar has received substantial orders to supply solar cells and solar modules in the second quarter. Our [order] visibility extends into the third quarter,” Lin said. “We expect operations will improve as selling prices are rising stably.”

Due to growing demand from Chinese customers because of the solar disputes between China and the EU, solar cell shipments from Taiwanese companies could grow by about 30 percent this quarter to 2,083 megawatts from 1,593 megawatts last quarter, Market Intelligence & Consulting Institute (MIC, 產業情報研究所) said on Thursday.

Prices for solar cell prices are expected to rise to US$0.41 per watt this quarter, from US$0.37 per watt in the first quarter, the Taipei-based MIC said.

Neo Solar said its solar module capacity also expanded to 240 megawatts a year following the merger with DelSolar.

The synergy has also boosted its pricing power in purchasing raw materials, meaning a significant reduction in raw material cost, the company said.

Separately, Neo Solar’s shareholders approved a proposal to sell 150 million common shares in the form of global depositary receipts in the second half of the year.

The company said it planned to use the proceeds to replenish operation funds and to repay bank loans.

Neo Solar shares dropped 0.19 percent to NT$25.6 yesterday, while the stock price of Motech plummeted 1.38 percent to NT$42.90.

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