April 24, 2008
Trina Solar Signs Long Term Supply Agreement with SILFAB S.p.A.
Thursday April 24, 8:49 am ET CHANGZHOU, China, April 24 /Xinhua-PRNewswire-FirstCall/ --
Trina Solar Limited (NYSE: TSL; "Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that the Company has signed a long-term polysilicon supply agreement with SILFAB S.p.A.
Under this agreement, SILFAB S.p.A. will supply Trina Solar with virgin polysilicon sufficient to produce approximately 225 MW of solar modules in aggregate over six years. Delivery of polysilicon at predetermined prices will start in the first quarter of 2010.
"This long-term supply agreement with SILFAB S.p.A. will enhance our ability to expand our operations and meet our objective of becoming a leading global PV manufacturer. In addition, we believe that this contract, which offers attractive payment terms, together with our other long-term contracts, will enhance our ability to expand our margins in the long term as the cost of solar energy approaches grid parity," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer.
"We look forward to developing a close relationship with Trina," said Franco Traverso, SILFAB S.p.A.'s Chairman and CEO. "We are pleased to become one of Trina Solar's key suppliers and to help them with the supply of polysilicon."
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL - News), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About SILFAB S.p.A.
SILFAB S.p.A. is the first Italian company whose mission is the production of high quality solar grade polysilicon for the photovoltaic (PV) market. SILFAB offers superior quality of polysilicon, at Grade: 9N-, suitable for the solar cell manufacturers. SILFAB was founded in Piemonte by an expert in the renewable energy business, Franco Traverso, who has 25 years of experience in the PV sector. SILFAB's partners are leading PV product providers in Europe with a strong interest in the procurement of solar grade polysilicon.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, Trina Solar's ability to raise additional capital to finance its activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Trina Solar Limited
Sean Shao, CFO
Tel: +86-519-8548-2008 (Changzhou)
Thomas Young, Director of Investor Relations
Tel: +86-519-8548-2008 (Changzhou)
Email: ir@trinasolar.com
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com
Source: Trina Solar Limited
April 23, 2008
Trina Solar: Best Value in the Solar Space
Just about three months ago—while the solar stocks were being taken to the backyard and shot—I wrote an article
April 22, 2008
Trina Solar's Key Suppliers Sign Investment Agreements with Changzhou National High Tech District
Tuesday April 22, 8:00 am ET CHANGZHOU, China, April 22 /Xinhua-PRNewswire-FirstCall/
-- Trina Solar Limited (NYSE: TSL; ''Trina Solar'' or the ''Company''), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that five of its key suppliers have signed investment agreements to establish production facilities in the Changzhou Trina Photovoltaic Industrial Park. With the help of Trina Solar, these suppliers signed agreements today with the Changzhou National High Tech District in conjunction with Trina Solar's 10th Anniversary celebration. "We welcome these suppliers to Changzhou and are very happy to assist Trina Solar in reaching its aggressive expansion goals," said Vincent Dai, Vice-Director of the Administrative Committee.
The suppliers, which include Guangzhou ChienSong Grind Material Co., Ltd., Hubei Feilihua Quartz Glass Co., Ltd., Suzhou Good-Ark Electronics Co., Ltd., and a European manufacturer of PV glass, produce products such as reclaimed slurry, crucibles, junction boxes, and low iron glass used in the production of solar PV modules. These companies are targeting total investments of over $275 million in Changzhou. "We are very excited by the advancement of the Changzhou Trina Photovoltaic Industrial Park and the opportunity to form strong partnerships with each of these key suppliers," said Jifan Gao, Trina Solar's Chairman and CEO.
The five suppliers plan to build production facilities in Changzhou and enter into long-term supply agreements with Trina Solar. Their presence in the Changzhou Trina Photovoltaic Industrial Park will help to advance Trina Solar's goal of ensuring a steady supply of its key supply chain components, while providing the company with lower material costs, among other logistical advantages.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL - News), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Trina Solar Limited
Mr. Sean Shao, CFO
Phone: +86-519-8548-2008 (Changzhou)
Mr. Thomas Young, Director of Investor Relations
Phone: +86-519-8548-2008 (Changzhou)
Email: ir@trinasolar.com
CCG Elite Investor Relations
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ed Job, CFA
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
Bulls are back...
Datum 18.04.2008 - Uhrzeit 14:49 (© BörseGo AG 2007, Autor: Rain André, Technischer Analyst, © GodmodeTrader - http://www.godmode-trader.de/)
April 18, 2008
Zacks Commentary: Aggressive Growth (TSL)
Trina Solar
By Roopak Chakravarty
Apr 18, 2008
Trina Solar is shining brightly amidst a solar boom. It is much more attractively valued than its peers and has similar fundamentals. The company has posted an average surprise of over 18% during the past four quarters. This year’s earnings estimates have increased 22 cents to $2.81 per share over the past 60 days. Analysts are expecting a further 57% jump in earnings next year. Additionally, the most accurate estimate shows almost 18% growth for this year.
Full Analysis
Trina Solar (TSL) through its subsidiary, Changzhou Trina Solar Energy Co., Ltd., engages in the manufacture and sale of solar-power products primarily in China. The company's solar modules provide electric power for residential, commercial, industrial, and other applications worldwide.
It produces solar modules ranging from 160 watts to 185 watts in power output. The company manufactures monocrystalline ingots, wafers, and solar cells for use in its solar module production. Trina Solar Limited provides silicon wafers to toll manufacturers and purchase solar cells from toll manufacturers.
The company recently canceled plans to build a $1 billion polysilicon plant after the market for the raw material used in solar cells loosened. There has been a scarcity of polysilicon available for the burgeoning global solar cell market, but Trina said recent developments have been "favorable" for long-term supply of the raw material. This is actually a positive for the company since it was trying to bite off more than it could chew.
In early-March, the company reported that fourth-quarter earnings surged on strong demand for solar-power systems and higher profit margins. The Chinese solar company's net income more than tripled to $15.7 million, or 62 cents per share, from $4.6 million, or 28 cents per share. Revenue climbed to $101.4 million from $38.8 million. Analysts expected 49 cents per share.
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao.
The company has posted an average surprise of over 18% during the past four quarters. This year’s earnings estimates have increased 22 cents to $2.81 per share over the past 60 days. Analysts are expecting a further 57% jump in earnings next year. Additionally, the most accurate estimate shows almost 18% growth for this year.
Source, www.zacks.comMorgan Stanley top picks (TSL)
Solar – Growing Pains
Investment conclusion: Earnings expectations are
likely to decline from 2009 as supply begins to outpace
solar demand and offset benefits from lower polysilicon
prices. This may be already reflected in stock prices with
the sector down 25% year-to-date, however, given that
we expect profitability to deteriorate relative to current
high consensus expectations, we think it is too early to
aggressively add to positions until we see signs of
stabilized margins. We downgrade our Asia Solar
Devices industry views to In-Line from Attractive.
The solar industry is heading for a turbulent period:
Subsidized markets are unlikely to be large enough to
absorb expected supply over the next 2-3 years, and we
forecast 30-40% price reductions in downstream
components to stimulate new markets. Low barriers to
entry of cell processing and existing overcapacity may
well lead to faster falls in cell ASPs than in other
components. Hence, volume growth should remain
strong, but margins suffer.
New estimates: Our EPS forecasts have been cut by
4% and 10% on average for 2008 and 2009,
respectively. This puts us at 10-40% below consensus.
In the near-term, upstream (polysilicon, wafer) should
continue to enjoy pricing power, while downstream
cell/module companies may face higher earnings risk as
rising input costs continue to pressure margin.
Longer-term, we expect faster ASP erosion due to
higher fragmentation to result in top-line growth to
decelerate and margins to fall from 2H09.
LDK and Trina are our top picks. We would re-visit
Suntech as well. With limited differentiation among
Asian names, a wide valuation gap among PV
companies is not justified, in our view, and hence there
is an opportunity to switch to companies trading at lower
valuation. LDK stands out as the most attractive
risk/reward with earnings momentum mounting again.
We would take another look at Suntech again and keep
our switch to Trina from Yingli trade. Regulatory
developments (mainly US and Spain) and quarterly
earnings provide key catalysts over the coming months.
April 17, 2008 Morgan Stanley
www.morganstanley.com
Since its founding in 1935, Morgan Stanley and its people have helped redefine the meaning of financial services. The firm has continually broken new ground in advising our clients on strategic transactions, in pioneering the global expansion of finance and capital markets, and in providing new opportunities for individual and institutional investors.
April 16, 2008
Ardour Capital upgrade TSL
| Company | Ticker | Brokerage Firm | Ratings Change | Price Target |
|---|---|---|---|---|
| Trina Solar | TSL | Ardour Capital | Buy | $66»$69 |
14-Apr-08
Source, Briefing.com
Trina Solar shares jump after upgrade
Friedman, Billings, Ramsey & Co. analyst Mehdi Hosseini upgraded the Chinese company to "Market Perform" from "Underperform" and raised his price target to $48 from $25. The new rating implies he expects shares to rise about 13 percent over Tuesday's $42.47 close.
The decision not to build the plant is likely due to high obstacles facing any new polysilicon manufacturers, he said. Polysilicon is used to make solar cells.
Hosseini also raised his 2008 revenue estimate to $794 million from $716 million due to expectations for higher shipments than the company's own outlook. Analysts polled by Thomson Financial expect, on average, revenue of $713.5 million.
"Nonetheless, our higher revenue expectations are now offset by a lower margin profile (due to higher polysilicon cost assumptions) and higher interest expenses, making the net impact to earnings-per-share line nil," Hosseini said in a note to clients.
April 15, 2008
Solar ETF (TAN) launch
NEW YORK, Apr 15, 2008 (BUSINESS WIRE) -- NYSE Euronext (NYX) today announced the launch of the first global solar energy index ETF the Claymore/MAC Global Solar Energy Index ETF on NYSE Arca. As an industry leader in ETF and ETN listings and trading, exchange traded products listed on NYSE Arca represent 56% of ETF and ETN assets under management in the U.S., nearly $609 billion, the most of any exchange.
The Claymore/MAC Global Solar Energy Index ETF, which trades under the ticker symbol TAN, is designed to track approximately 25 companies within the following business segments of the solar power industry: equipment producers, suppliers of materials or services, installation, integration or finance, and companies that specialize in selling electricity.
The following NYSE-listed companies are included in the Claymore/MAC Global Solar Energy Index: MEMC Electronic Materials Inc. (WFR), Suntech Power Holdings Co Ltd (STP), LDK Solar Co Ltd (LDK), Yingli Green Energy (YGE), Trina Solar Ltd. (TSL) .
Top Fund Holdings as of 4/14/08
| Name | Weighting |
|---|---|
| FIRST SOLAR INC | 8.77 % |
| RENEWABLE ENERGY CORP AS | 7.45 % |
| Q-CELLS AG | 6.44 % |
| SUNTECH POWER HOLDINGS ADR | 6.19 % |
| JA SOLAR HOLDINGS CO LTD | 5.25 % |
| SOLARWORLD AG | 5.24 % |
| SUNPOWER CORP-A | 4.95 % |
| LDK SOLAR CO LTD-ADR | 4.74 % |
| MEMC ELECTRONIC MATERIALS INC | 4.68 % |
| YINGLI GREEN ENERGY - ADR | 4.32 % |
| SOLARIA ENERGIA Y MEDIO AMBIENTE SA | 3.74 % |
| TRINA SOLAR LTD-SPON ADR | 3.58 % |
| EVERGREEN SOLAR INC | 3.31 % |
| CENTROTHERM PHOTOVOLTAICS | 3.25 % |
| ENERGY CONVERSION DEVICES | 3.16 % |
| SOLARFUN POWER HOLDINGS CO | 3.15 % |
| ERSOL SOLAR ENERGY AG | 3.04 % |
| CANADIAN SOLAR INC | 3.01 % |
| SOLON AG FUER SOLARTECHNI | 2.79 % |
| MEYER BURGER TECHNOLOGY A | 2.66 % |
| CONERGY AG | 2.45 % |
| CHINA SUNERGY CO LTD | 2.05 % |
| MANZ AUTOMATION AG | 2.00 % |
| ROTH & RAU AG | 1.99 % |
| EMCORE CORP | 1.81 % |
April 14, 2008
Q&A on Discontinuance of Polysilicon Production Facility
(1) Is the decision due to significant change in market conditions, change in strategic direction, or both?
The Company’s decision to discontinue the development of a polysilicon production facility at Lianyungang, Jiangsu province was due primary to changes in market conditions. The Company’s strategy will continue to focus on three areas: lowering of module manufacturing costs, development and advancement of our of core technologies, and further development of a strong brand in the marketplace.
Supply-demand conditions in the polysilicon market have changed considerably. The Company believes that it now has greater access to long-term contracts with improved delivery and payment terms for polysilicon to meet its planned capacity expansion requirements in the next several years.
The average price of polysilicon, though remaining high in the short term, is expected to decrease in the long term as a significant portion of polysilicon manufacturing capacity currently under construction becomes available. Long-term contracts now generally have prices that will decline over time. These contracts will allow the Company to reduce its per watt polysilicon costs over time and to expand its margins in the long term.
As a result, the Company does not see the need to commit capital to building its internal capacity for polysilicon production, but will still evaluate investing in other projects opportunistically where attractive economics are offered and that involve notably smaller investment scale.
(2) Is the Company currently evaluating any alternative strategic investments in polysilicon production?
There are no strategic investments currently under consideration.
(3) Under what future criteria may we consider an alternative strategic investment in polysilico production?
A potential investment project that would serve the Company’s best interests in long-term supply visibility and quality by means of a minor shareholding.
(4) Were concerns of equipment supply delivery or recruitment and development of a project management team factors in the decision to discontinue investment?
These were not factors in the decision process.
(5) Does this decision affect the amount of silicon procurement required in 2008 or 2009, or your operating profitability in the upcoming years?
The decision does not change the amount of silicon to be purchased by the Company in 2008 or 2009
(6) Is this decision subject to approval by the Company’s Board of Directors?
The decision was approved by the Company’s Board of Directors on April 11, 2008
Source Trina Solar. 14.04.2008
Trina Solar Discontinues Development of Polysilicon Production Facility
CHANGZHOU, China, April 14 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL - News; "Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced its decision to discontinue the development of its previously announced 10,000MT polysilicon production facility having a total estimated cost of $1 billion. The Company also announced that its related equipment supply contract with GT Solar Incorporated ("GT Solar"), which was subject to final approval by the Boards of both companies, will lapse as a result, with the concurrence of both parties.
"We have made this strategic decision after careful assessment of our raw material requirements, in conjunction with recent and favorable long term polysilicon market and supply condition developments." said Jifan Gao, Trina Solar's Chairman and CEO. "Furthermore, we wish to reaffirm our strong working relationship with our partner GT Solar, which continues to provide us with advanced multicrystalline technology platforms to support our target of 350MW of annualized module capacity by the end of 2008."
Tom Zarrella, GT Solar's CEO, stated, "Trina Solar is a long-term and valued customer, and we look forward to supplying them with our advanced DSS casting platforms and other products and services, as they continue to grow their business aggressively."
As a result of recent favorable changes in the polysilicon supply environment, Trina Solar now believes it has greater access to polysilicon feedstock to support its growth objectives. To address its forward polysilicon requirements, the Company will continue to sign long term contracts as a means to meet its strategic supply needs. Additionally, Trina Solar will consider strategic investment options in future polysilicon projects which offer attractive economics and involve smaller investment requirements, although no projects are currently under consideration.
The Company will post Q&A relating to this announcement on the Investor Relations homepage of its website.
About Trina Solar Limited
Trina Solar Limited (NYSE: TSL - News), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About GT Solar
GT Solar Incorporated, a wholly-owned subsidiary of GT Solar International, is a key global provider of manufacturing equipment and turnkey manufacturing solutions across the photovoltaic supply chain. Based in Merrimack, NH (USA), the company's products include equipment used to produce multi-crystalline solar wafers, cells and modules. GT Solar also manufactures polysilicon reactors, which allow its customers to produce polysilicon from which solar wafers are made. For more information, go to http://www.gtsolar.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, Trina Solar's ability to raise additional capital to finance its activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Trina Solar Limited
Sean Shao, CFO
Tel: +86-519-8548-2008 (Changzhou)
Thomas Young, Director of Investor Relations
Tel: +86-519-8548-2008 (Changzhou)
Email: ir@trinasolar.com
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com
Source: Trina Solar Limited
April 11, 2008
Cowen & Co. ups ests way above consensus
11.04.08 Cowen is out positive on Trina Solar this morning raising their Street high 2008 estimates to to reflect the new GCL supply deal, which boosts secured silicon to 95% of targeted production. We believe Street consensus is too low on operating margin, and too high on interest expense (poly plant interest should be capitalized). Silicon coverage for 2009 also looks good, with perhaps 15% still to come from new sources.
Raising 2008E E/ADS To $4.05 Vs. Prior $3.64, Street $2.90. They raised revenue to $750MM (vs. prior $710MM, St. $709MM), based on shipments of 195MW (in line with 95% coverage of 200-210MW target). Since 15% of poly is covered by the new contract, they boosted GM by 50 b.p., to 23.8% (vs. St. 23.1%).
Sees 50%+ upside vs. the market in 12 months and reiterates Outperform.
April 2, 2008
Trina Solar Signs Long Term Supply Agreement with GCL Silicon Technology
CHANGZHOU, China, April 2, 2008 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL - News; ''Trina Solar'' or the ''Company''), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced that the Company has signed a long-term polysilicon supply agreement with a subsidiary of GCL Silicon Technology Holdings Ltd. (collectively, ''GCL Silicon Technology'').
Under this agreement, GCL Silicon Technology will supply Trina Solar with virgin polysilicon sufficient to produce approximately 2,600 MW of solar modules in aggregate over eight years. Delivery of polysilicon at predetermined prices will start in April of 2008.
''This agreement represents a key component of our strategy to secure sufficient feedstock to support our sales growth. Combined with our other long-term agreements, planned in-house polysilicon production, and integrated manufacturing cost efficiencies, we believe we are in a strong position to expand our margins in the long term as the cost of solar energy approaches grid parity," said Jifan Gao, Trina Solar's Chairman and Chief Executive Officer. "This eight-year agreement will provide Trina Solar with a large quantity of polysilicon at favorable terms with delivery scheduled to commence this month."
"We are pleased to become a polysilicon supplier to Trina Solar and look forward to developing a close relationship with them," said Hunter Jiang, President of GCL Silicon Technology. "GCL Silicon Technology intends to expand its polysilicon production capacity to meet the growing demands of customers like Trina Solar.''
This long-term polysilicon supply agreement will enhance the Company's raw material supplies and increase its cost structure visibility to strengthen its position as a leading global PV manufacturer. After signing this agreement and together with other polysilicon supply agreements, the Company has now secured approximately 95% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 195 MW based on a production target of 200 to 210 MW of module output.
Trina Solar Limited (NYSE: TSL - News), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally-friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at http://www.trinasolar.com .
About GCL Silicon Technology
GCL Silicon Technology Holdings Limited, through its subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., sells polysilicon and wafers to the solar industry. The company operates a polysilicon production facility in Xuzhou, Jiangsu Province in China.
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