CHINA SUN EXPECTED TO SHINE IN 2009
Yingli Green Energy, a major player in China solar manufacturing, says everything looks just fine for 2009.
In conjunction with the announcement of 2 new contracts to supply Germany’s IBC Solar with 91 megawatts of PV modules, the company released a correction to an earlier statement. It will NOT ship 400 megawatts of solar modules in 2009, Yingli now says, it will ship 550-to-600 megawatts next year.
The statement did hedge slightly: “...[B]ased on current market and operating conditions, estimated production capacity and forecasted customer demand, as well as current exchange rates,” it stipulated. Overall, though, the statement was exciting, just the kind of thing the New Energy industries dearly want to hear.
The truth, frankly, is that nobody yet knows what 2009 is going to be like. Reports are coming in every day, in formal press statements and personal anecdotes, of companies sitting on the sidelines, watching and waiting.
Most likely scenario: Yingli Green Energy's predictions will be right. The $568 billion Chinese stimulus package (see CHINA STIMULUS EXPECTED...) will kick in and the even larger U.S. stimulus plan will be approved. Both will invest liberally in New Energy and Energy Efficiency infrastructure. At some point in the 2nd or 3rd quarter, suddenly, New Energy action will pick up.
Disclaimer: That preceding sentence predicted action in New Energy. It said nothing about action in the banking and finance sectors or in the stock market at large.
Uninterrupted growth is expected to continue right through the recession. (click to enlarge)Yingli Green Energy Reaffirms Business Outlook for Fiscal Year 2009
December 5, 2008 (PR Newswire/Asia-First Call/COMTEX via MarketWatch)
and
Yingli signs new sales contracts with IBC Solar
December 5, 2008 (AP via Forbes)
WHO
Yingli Green Energy Holding Company Ltd.( Liansheng Miao, Chairman/CEO); IBC Solar AG
WHAT
Yingli Green Energy, one of China’s biggest solar PV manufacturers, is predicting big business for the coming year.
Uninterrupted growth is expected to continue right through the recession. (click to enlarge)WHEN
- 2009 total PV module shipments forecast: 550-to-600 megawatts.
- 2009 gross margin forecast: 24%+.
- Key factor: Q3 200 megawatt capacity expansion.
- IBC contracts run 1 year, through December 2009, fixed at December 2008 prices for January through October 2009
WHERE
- Yingli Green Energy is based in Baoding, Hebei Province, China.
- IBC Solar AG is based in Germany.
- Yingli Green Energy’s ability to meet its 2009 goals depends in part on exchange rates for the U.S. dollar, Euro and China Renminbi.
- Yingli Green Energy sells PV modules in Germany, Spain, Italy, South Korea, Belgium, France, China and the United States.
WHY
- Yingli Green Energy is a vertically integrated PV manufacturer, taking the process from raw silicon to panels.
- New York Stock Exchange symbol: YSE
- 12-5-2008: 1 Chinese yuan = 0.145465 U.S. dollars
- Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 megawatts in the Q3 2009.
- IBC contracts will be adjusted by mutual agreement if the market price falls below the fixed prices.
- Yingli Green Energy’s 24% gross margin prediction for 2009 is based on:
(1) Multiple mid- to long-term virgin polysilicon supply agreements with leading polysilicon suppliers for 2009.
(2) Estimates of 2009 polysilicon prices.
(3) Expected decreases in PV module sales price.
(4) Expected further depreciation of the Euro versus U.S. dollar.
Uninterrupted growth is expected to continue right through the recession. (click to enlarge)QUOTES
From Yingli Green Energy: “Yingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through the Company's principal operating subsidiary in China, Baoding Tianwei Yingli New Energy Resources Co., Ltd., Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity.”
posted by Herman K. Trabish @ 9:53 AM
1 Comments:
Our country is in deep economical trouble and it just amazes me how little credit has been given to the high cost of fuel this past year. That one single factor alone has been solely responsible for putting more businesses out of business and more homeowners out of their home than any other factor. The historically high cost of gas affects every single aspect of our economy and society. Most family's went broke filling up at the pump alone. Then added to the burden was the higher cost of every consumer product because the increased production and shipping cost due to the higher fuel was passed on to the consumer. Let me ask you this, have you seen the price of groceries come down since the price of gas came back down. NOOO! Freddie and Fannie are taking most of the blame for homes being lost. Of all the homes I have seen lost in my area of the country S FL and I have seen many and many more in the process, not one was due to an adjustable rate mortgage. It was due to lack of work. When we pay more for gas and products we naturally cut back spending, that is a domino effect, less consumer spending = more jobs lost. We seriously need to get on about the business of becoming energy independent. Jeff Wilson just released a book called The Manhattan Project of 2009 Energy Independence NOW. He outlines all our uses of oil, things I never even considered. Our depletion, which is even scarier, this is a finite source of energy. It will run totally out and not in the too distant future. We have so much available to us, wind and solar which are free, we just need to harness them. And plug in car technology. It would cost the equivalent of 60 cents a gallon to charge an electric car with the average home electric rates. That is insanely cheap. That electricity to charge the car could be generated from wind or solar. A company called Better Place in Palo Alto CA is in the beginning stages of setting up the infrastructures needed to support electric car use in the bay area in CA and now in Hawaii. WE need to take some of these billions and get ourselves out from under our dependence on foreign countries supplying our main source of energy. I encourage you to read this book www.themanhattanprojectof2009.com. I also have quickly become a "Better Place" junkie and applauded their work as they move our country forward and away from our dependence on foreign oil. Check out their web site as well. http://www.betterplace.com/ click on their get involved button on the top right side of the main page. You can sign a petition there. WE have to move this country forward. Use some of that stimulus money to bail us out of our dependence on foreign oil. Create badly needed new green collar jobs and at the same time provide clean , cheap energy. There is no one single factor that effects our economy more than the cost of our main source of energy. This past year is a testimony to that!
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