WUXI, China, May 23, 2007 /Xinhua-PRNewswire via COMTEX News Network/ -- Suntech Power Holdings Co.,
Ltd. (NYSE: STP), one of the world's leading manufacturers of photovoltaic
(PV) cells and modules, recently announced that it has begun construction on a
thin film R&D and manufacturing facility in Caohejing Hi-tech Park in
Shanghai, China. The first phase of the new plant is expected to begin
operation in 2008 reaching 50MW of thin film solar cell production capacity in
2009.
Suntech's thin film module production will be based on technology that
deposits amorphous and micro-crystalline silicon thin film on glass substrate.
The product will use less than 2% of the silicon required to manufacture
equivalent crystalline silicon PV products. Suntech currently projects that
the thin film modules will have a solar conversion efficiency of 6% to 9% and
an initial production cost of approximately $1.20 per watt (based on 6% solar
conversion efficiency), which is forecasted to continue to decline as both
production scale and conversion efficiencies increase. The thin film modules
will be nearly 6 square meters in size, which would make the balance of system
installation costs of Suntech's thin film solution significantly lower than
other PV solutions.
"After having acquired MSK, one of the industry leaders in the building
integrated photovoltaic products (BIPV) space, we were very pleased to see
that there is both a strong and long term global sales market for these
products, especially thin film PV modules. We anticipate many complementary
sales opportunities to our traditional PV product customer base. We plan to
combine our thin film product with MSK's BIPV product thereby capturing a
greater portion of the PV value chain in a higher margin, higher ASP and
higher value added product segment," said Dr. Zhengrong Shi Suntech's Chairman
and CEO.
"We believe that Suntech is uniquely positioned to take advantage of this
long term sales opportunity not only because of MSK's leading BIPV
capabilities, but also as we have significant thin film expertise among our
senior management and R&D team. In fact, a majority of our executive officers,
including myself, have had long and substantive experience in thin film
product research and development. Our new facility's proximity to Shanghai
will also help us continue to attract highly qualified personnel and put
Suntech in an excellent position to further promote solar solutions in the
regions that we serve," continued Dr. Shi.
"While BIPV is currently a relatively small segment of the overall solar
market, it is one which we expect will grow rapidly in the coming years,"
added Dr. Shi. "Low projected production costs, which are projected to
continue to fall from a very low base, when combined with growing residential
and commercial demand for our leading BIPV solutions will help make our
products very competitive in this space."
Suntech is already an established global leader in the building integrated
photovoltaic products (BIPV) space through its 2006 acquisition of Japan's MSK
Corporation. In addition, many senior members of Suntech's R&D team and its
officers have significant expertise in the thin film field. Dr. Shi was a
senior research scientist and the leader of the Thin Film Solar Cells Research
Group in the Centre of Excellence for Photovoltaic Engineering at the
University of New South Wales in Australia and holds multiple patents in thin
film technology. Prior to founding Suntech, Dr. Shi and various of Suntech's
key officers and researchers were employed at an Australian PV company engaged
in the commercialization of next-generation crystalline silicon thin film
technology.
Suntech recent letter of intent with U.S.-based Open Energy to further
BIPV initiatives is intended to expand BIPV sales of each company which will
be furthered by Suntech's thin film initiatives. As part of the collaboration,
Suntech will manufacture Open Energy's SolarSave(R) PV Tiles and jointly
promote BIPV products in the North American market.
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the
world as measured by both production output and capacity of solar cells and
modules. Suntech provides solar solutions for a green future. Suntech designs,
develops, manufactures, and markets a variety of high quality, cost effective
and environmentally friendly PV cells and modules for electric power
applications in the residential, commercial, industrial, and public utility
sectors. Suntech's majority-owned subsidiary, MSK Corporation is one of the
top-ranked companies in the building-integrated photovoltaics (BIPV) space.
Suntech's customers are located in various markets worldwide, including key
markets throughout Europe, Japan, China and the United States. For more
information, please visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements.
Among other things, Suntech's expectations with respect to its thin film
initiatives and strategies as well as the growth of the thin film market above
contain forward-looking statements. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from those
in the forward-looking statements. Further information regarding these and
other risks is included in Suntech's filings with the U.S. Securities and
Exchange Commission, including its annual report on Form 20-F. Suntech does
not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required
under applicable law.
For more information, please contact:
Steven Chan
VP of Business Development
Suntech Power Holdings Co., Ltd.
Tel: +86-510-8531-8910
Email: ir@suntech-power.com
In the United States:
Sanjay M. Hurry
Vice President
The Piacente Group, Inc.
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com
In China:
Rory Macpherson
Consultant
Ogilvy Public Relations Worldwide
Tel: +86-10-8520-6553
Email: rory.macpherson@ogilvy.com
