Swiss Tech firm Oerlikon to double solar division capacity

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http://www.guardian.co.uk

By Richard Dobson

TAIPEI, Jan 11 (Reuters) - The solar unit of Swiss technology group Oerlikon said on Friday it would double its production capacity by adding a new plant in Asia and raised its 2008 sales forecast by 17 percent on surging demand.

A market leader in supplying machines that make thin-film solar cells, Oerlikon said it would establish a new production facility in Singapore as producers struggle to meet demand for the technology, the company said in a statement.

"We would have at least equal capacity out of Asia as we do in Europe," said Oerlikon Solar CEO Jeannine Sargent in a phone interview with Reuters.
Capacity for 2007 is expected to have hit 300 million francs, said Sargent, with the Singapore addition increasing sales four-fold, or around 1.2 billion francs once the plant becomes operational in the first quarter of 2009.

Record oil prices, concerns about climate change and government incentives to move away from fossil fuels have boosted investment in alternative energy sources, spurring demand for solar panels and lifting sales.

"Oerlikon Solar's sales have exceeded this year's planning and are expected to rise to more than 700 million Swiss francs ($636 million) in 2008, with growth rates exceeding 50 percent over the next several years," the company said in an emailed statement on Friday.

The company had forecast 2008 sales of 600 million francs in October.
Oerlikon's solar unit has a market share of around 50 percent for thin-film technology and competes with America's Applied Materials. Its customers include

Taiwan's CMC Magnetics Corp and Italy's Pramac SpA.
Thin-film solar cells use much less silicon than conventional solar cells, lowering production costs and module prices. However, they aren't as efficient at transferring the sun's energy into electricity as traditional crystalline cells.
Oerlikon is currently hiring for the Singapore facility and is seeking a location to build, said Sargent.

The plant will help meet surging demand in Asia, which Sargent said will be one of the fastest-growing regions for producing thin-film solar modules in the world over the next two to three years, said Sargent.

"Based on recent announcements, the Asian capacity for solar panels produced will grow to more then 4 GWp (gigawatt peak) by 2010, which is more than double that of
the U.S. and Europe," the company said in an emailed statement.

As demand has surged, suppliers have struggled to meet orders, and Sargent said Oerlikon, like others, was finding it a challenge to deliver.

"We'd like to have delivery times in the 6-9 month window, and we're probably slightly outside of that 9-month window right now, and that's why we're accelerating our plans both in Europe with the announced expansions as well as this new expansion for capacity in Asia," he said.

The potential of thin film has attracted major solar energy players such as German-based Q-Cells AG and Japan's Sharp Corp, one of the world's leading solar panel makers.