Solar cell maker Gintech Energy Corp (昱晶) yesterday said it planned to raise prices by 3 percent next month, as robust customer demand has put pressure on supplies, indicating the company might well swing back into the black this quarter.
That would mean an end to four quarters of losses as demand softened following the launch of anti-subsidy and anti-dumping probes into Taiwanese and Chinese solar cell manufacturers by US and European competition watchdogs.
“During the third quarter, demand has exceeded supply. That is set to push up solar cell prices by 2 or 3 percent next month,” Gintech chairman Wenent Pan (潘文炎) told reporters. “The uptick is set to extend through the remainder of the third quarter.”
A pickup in demand also looks set to help Gintech increase its shipments by a double-digit percentage this quarter, Pan said.
Gintech lost NT$296.2 million (US$9.43 million) in the first quarter, following losses of NT$378.13 million for the whole of last year.
The announcement of a strategic partnership with Chinese solar firm Tongwei Group (通威集團) on Monday would provide a boost to Gintech’s prospects, the company said.
As part of the strategic alliance, Tongwei agreed to spend NT$850 million on subscribing to 50 million Gintech shares, or 10 percent of the company’s total outstanding shares.
Gintech shares rallied 3.08 percent to NT$20.1 yesterday, outperforming local rivals Neo Solar Power Corp (新日光) and Motech Industries Inc (茂迪), which sank 0.76 percent and 3.69 percent to NT$26.15 and NT$43.05 respectively.
“We are complementary to each other in many ways, including the formation of business strategies to fend off negative factors affecting the industry [anti-dumping and anti-subsidy probes],” Pan said.
Under the terms of agreement Gintech would supply solar cells to Tongwei, which operates the world’s third-largest solar cell maker, Tongwei Solar (Hefei) Co (通威太陽能). Tongwei also makes polysilicon materials and builds solar plants via its other subsidiaries in China.
Tongwei has secured solar-power projects to install a total of 200 megawatts of solar devices including rooftop solar panels for Chinese farmers, according to the statement.
The Chinese company is also installing small and medium-sized solar power systems for households in rural Chinese towns and villages, the statement said.
“With this enormous demand from Tongwei’s solar power systems, Gintech is set to gain access to the Chinese market and boost the company’s business significantly in the medium and long terms,” Gintech said in a statement.
Gintech is also to supply solar cells to Tongwei at its new plant in Thailand and would work together to tap into the Southeastern Asian markets, the statement said. Gintech also plans to ship solar cells made in its Thailand plant to the US.
Gintech expects the Thailand plant to start operations in October. The plant is designed to have an annual capacity of 350 megawatts.
The company is in talks with Tongwei to expand the plant’s capacity to one gigawatt per year by investing an additional NT$5 billion jointly.
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