CHINA SUN EYES U.S. SALES

Suntech Aims To Triple American Sales; But thin film acquisition CSG Solar is getting retooled
Michael Kanellos, March 29, 2010 (Greentech Media)

"2010 is shaping up to be another strong year for Suntech…[T]he Chinese solar manufacturer could sell close to 200 megawatts of solar panels into the North American market…That would potentially give it close to 20 to 25 percent of the U.S. market…[of] 800 to 1,000 megawatts…

"The 2010 total would include sales to Ontario, Canada, one of the more rapidly developing markets right now. Samsung last year committed to invest $1.6 billion in renewable projects and factory capacity the province…but most of the shipments will go to the U.S…In 2008, [Suntech] sold 35 megawatts worth of panels in the U.S…[Its] U.S. dealer network has also grown from 40 installer/dealers to around 200 in a year. And, although Suntech has largely sold into the residential market in the states, the company is expanding its utility portfolio…"

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"Not all is wonderful in Suntech-land, of course. Competition remains fierce. First Solar and SunPower have landed a number of large contracts with utilities as well and General Electric said recently that it would sell cadmium telluride solar panels next year to developers bidding on utility-scale projects.

"Some of Suntech's new business efforts haven't exactly zoomed to success either. Gemini Solar, a Suntech joint venture that develops solar power plants, has landed [only] a comparatively small 30-megawatt plant announced a little over a year ago…The CSG Solar acquisition, which made Suntech a manufacturer of crystalline silicon-on-glass modules, is being retooled. Suntech bought a controlling interest in the company -- which had raised $35 million in VC funds -- last year. After the acquisition, solar prices plummeted…"

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"…Suntech likes the U.S. better than Europe in some ways. Europe collectively remains a larger market but the frenzy preceding and following feed-in tariff adjustments can wreak havoc with panel prices and the stocks of solar companies…For most of last year, Suntech has had spare factory capacity, but that disappeared during the summer. That's a reversal from a year ago, when the company was implementing layoffs and left 50 percent of its factory capacity idle…Pricing in the solar market has calmed down and roughly stabilized in February…

"Other entrants like Samsung and Panasonic will hit [U.S.] ground running in solar and come in with lots of money. How well they do is another matter…Solar, though, will likely remain attractive to these companies…Suntech has three thin film efforts: an amorphous crystalline silicon arm…CSG Solar effort and an unnamed in-house thin film project…[but] the company's expertise [is] in silicon…Capacity in Suntech's plant for its high-efficiency Pluto modules will rise to 450 megawatts by the end of the year. Actual production will be lower. Suntech will produce around 30 megawatts by the end of the first half and 120 to 150 megawatts in the second half. The average efficiency for Pluto cells cells now tops 19 percent…"