SAN FRANCISCO, Calif. and WUXI, China, Dec. 11 /Xinhua-PRNewswire/ --
Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's leading
manufacturers of photovoltaic (PV) cells and modules, today announced key
highlights from its Analyst and Investor Day held at the Company's
headquarters in Wuxi, China on Tuesday, December 11, 2007.
Suntech's Chairman and CEO Dr. Zhengrong Shi delivered comments about the
world's growing need for solar in the face of climate change and fossil fuels
scarcity. "Responsible organizations have an obligation to present
alternatives to address changing environmental needs," stated Dr. Shi.
"Suntech's mission is to combine pioneering solar technology with nature's
most abundant resource to deliver the cleanest, most affordable and energy
efficient solutions for a green future."
Dr. Shi also discussed Suntech's primary strategies for growth and the
acceleration of the Company's 1GW expansion target by two years and doubling
of its 2010 plan to 2GW due to accelerated market demand and outstanding
operational execution. "With the economies of scale generated from rapid
capacity expansion, our broad portfolio of low cost silicon supply and next
generation technology that will raise our conversion efficiency and improve
profitability, we are on track to reach grid parity pricing within a five year
time frame -- well ahead of many of our peers."
Suntech's Chief Operations Officer Graham Artes reviewed Suntech's
accelerated capacity expansion plans and outlined Suntech's unique path to low
cost automation in PV cell and module production that will enable Suntech to
scale to multi-gigawatt production while maintaining industry low wafer
breakage rate and leading product quality. Mr. Artes guided attendees on a
tour of the new 1GW production facility which features PV cell production
lines that can easily be retrofitted to accommodate Pluto technology.
Chief Strategy Officer Steven Chan followed with a review of global
dynamics fueling worldwide solar industry growth of well over 40% annually.
Mr. Chan noted, "Suntech's success in securing transformational silicon supply
contracts is due to sourcing leverage from our strong financial fundamentals
and global leadership role. Suntech's recent and future long-term contracts
reflect pricing that brings us closer to grid parity as we support early stage
poly producers through the use of prepayments. We will continue to focus on
building long term strategic alliances with numerous upstream suppliers."
Attendees were addressed by special guest speaker Dr. Tihu Wang, Chief
Executive Officer of Asia Silicon Co., Ltd. Suntech maintains an agreement
with Asia Silicon to purchase high purity polysilicon with a total value of up
to $1.5 billion over a seven-year period. Asia Silicon is in the process of
building a state-of-the-art polysilicon plant in Qinghai, China with
polysilicon production capacity targets of 2,000 metric tons by July 2008 and
over 6,000 metric tons by the end of 2010. "Asia Silicon's strong
relationship with Suntech is a key factor enabling us to pursue our rapid
capacity expansion plans. With our advanced technology and production process,
low capital expenditure and secure access to inexpensive electricity, we are
confident that Asia Silicon will develop to be one of the lowest cost
producers of polysilicon," said Dr. Wang.
Chief Technology Officer, Dr. Stuart Wenham, provided an overview of
Suntech's Pluto technology based on the PERL PV cell developed by the
University of New South Wales in Australia. The PERL PV cell holds the world
record in efficiency of 24.7%. Suntech's 20% conversion efficiency Pluto
technology is already achieving 18-19% conversion efficiency in pilot
production on monocrystalline silicon wafers and Suntech expects to initiate
commercial Pluto-based production in mid-2008.
Chief Financial Officer Amy Zhang concluded the Company's prepared remarks
with an overview of Suntech's 2007 financial achievements, current Company
guidance, planned cash flow management objectives and the potential for
improving profitability. Ms. Zhang commented, "Potential margin improvement
in 2009 and 2010 from higher cell efficiency, economies of scale and lower
silicon costs can be leveraged to generate higher profits or to reduce average
selling price and stimulate demand. As one of the lowest non-silicon cost per
watt producers with minimal operating expenses and taxes, rapid capacity
expansion will enable Suntech to penetrate new markets faster than competitors
and expand market share rapidly to deliver grid parity solar solutions on a
An archived webcast of Dr. Shi's keynote address is available on Suntech's
website at http://www.suntech-power.com , Investors: Events.
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, North America, Japan and China. 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.
In particular, the potential margin improvement in 2009 and 2010, expected
efficiency gains from Pluto technology, the business outlook and quotations
from management in this announcement, as well as Suntech's strategic and
operational plans, are forward-looking statements. Forward- looking
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:
Contact in China:
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
Contact in the United States:
Sanjay M. Hurry
The Piacente Group, Inc.