Suntech Power Holdings, the world’s largest solar cell maker, aims to boost its in-house wafer production to 50 percent of its total cell capacity, its chief executive said, as it continues to seek to lower manufacturing costs.
“We intend to produce wafers ourselves to 50 percent of (our) cell capacity,” Suntech’s Zhengrong Shi told Reuters on the sidelines of a Seoul summit on Monday.
Suntech’s founder and chairman said the company would increase its solar panel capacity to 2.4 gigawatts (GW) by end-2011, raising funds for expansion through joint ventures, bank loans and its own capital.
Suntech expects its margins to expand this year as it ramps up output of polysilicon wafers, which are used to make cells incorporated in solar modules.
Producing the wafers in-house rather than buying them from a third party cuts down on manufacturing costs.
The head of the Chinese company said it entered into wafer production with the acquisition of Glory Silicon last year. Suntech rivals such as Trina Solar Ltd and Yingli Green Energy Holding Co Ltd already produce their own wafers, and as a result Shi said earlier their profit margins have peaked while Suntech’s still have room for expansion.
Solar market seen continuing to grow
Solar power has been one of the fastest growing energy sectors in recent years, but remains tiny compared with oil, gas and coal because of its higher costs.
After Japan’s nuclear crisis highlighted the risks and limitations of nuclear power, more and more governments will initiate policies to support the solar industry, Shi said.
However, panel and silicon prices have been in a freefall this year after subsidy cuts in key European markets hampered demand and lead to oversupply.
“It has yet to be decided…but it looks like (there will be) no additional cuts (in subsidies),” Shi said when asked about German data that showed the country would scrap plans to cut incentives for solar power for July.
