Motech Competes to Boost Photovoltaic Capacity Across Taiwan Straits
30 May 2008
Motech Industrial Inc recently said it would boost its solar-cell output capacities in Taiwan and mainland China over the next three to five years to two gigawatts shortly after its mainland China rival Suntech Power announced it would ramp up its capacity to similar volume by the end of next year.
Motech`s President, YH Tso, said his company`s factory No.1 in Tainan, southern Taiwan, is already running at full capacity and boosting output to a planned 160-180 megawatts of solar cells. Nearby is its factory No.2, whose two production lines have just kicked off operation and maximum output is set at 360 megawatts. The No.2 factory plans to boost output to 800 megawatts.
At its mainland China factory, the company will initially install production lines for 60-65 megawatts of cells and afterward ramp up the output to 300 megawatts. Alongside the factory the company plans to open a new factory to help boost the company`s output to one gigawatt.
Tso pointed out that the company underwent loss last quarter mostly from the loss from foreign exchange, but the loss would not affect the company`s long-term development. He added the company`s revenue for last month set new high in11 consecutive months and the uptrend would go on. He is optimistic about the company`s gross margin performance in near future as his company has secured a long-term material source for its products and its total output is running at over 80 percent.
The company`s US polycrystalline-silicon affiliate, AE, will begin volume production sometime next year and its ingot factory`s output has ramped up to 100 megawatts and entered wafer-slicing segment.
Last month alone, Motech had revenue of NT$1.9 billion ($64 million), up 16.3 percent from a month earlier. The April result helped swell the company`s revenue for the first four months up to NT$6.8 billion ($228 million), increasing 52 percent year on year.
While expanding output capacity, Motech has also won lucrative orders. The company and Solar Semiconductor of India recently agreed to collaborate on development of thin-film solar cell technology and silicon-wafer supplies shortly after Motech received Solar`s lucrative orders for 120 megawatts of solar cells.
Industry watchers estimated the orders at over NT$10 billion, given that one megawatt of solar cell now sells for around NT$100 million ($3.3 million).
