Trina Solar Limited (NYSE: TSL), an integrated manufacturer of solar photovoltaic products, announced its decision to discontinue the development of a $1 billion polysilicon production facility, due to a growing supply of the raw material, used to produce photovoltaic solar cells, on the global market.
Trina Solar also announced that its related equipment supply contract with GT Solar Incorporated will lapse as a result.
As a result of recent favorable changes in the polysilicon supply environment, Trina Solar said it 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, the company said it 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.
"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 350 megawatts of annualized module capacity by the end of 2008."
About Trina Solar Limited
Trina Solar Limited 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.
About GT Solar
GT Solar Incorporated 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 .
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