SAN FRANCISCO, Calif. and WUXI, China, Dec. 11 /Xinhua-PRNewswire/ --Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world’s leading manufacturers of photovoltaic (PV) cells and modules, today announced key highlights from its Analyst and Investor Day held at the Company’s headquarters in Wuxi, China on Tuesday, December 11, 2007.
Suntech’s Chairman and CEO Dr. Zhengrong Shi delivered comments about the world’s growing need for solar in the face of climate change and fossil fuels scarcity. “Responsible organizations have an obligation to present alternatives to address changing environmental needs,” stated Dr. Shi. “Suntech’s mission is to combine pioneering solar technology with nature’s most abundant resource to deliver the cleanest, most affordable and energy efficient solutions for a green future.”
Dr. Shi also discussed Suntech’s primary strategies for growth and the acceleration of the Company’s 1GW expansion target by two years and doubling of its 2010 plan to 2GW due to accelerated market demand and outstanding operational execution. “With the economies of scale generated from rapid capacity expansion, our broad portfolio of low cost silicon supply and next generation technology that will raise our conversion efficiency and improve profitability, we are on track to reach grid parity pricing within a five year time frame -- well ahead of many of our peers.”
Suntech’s Chief Operations Officer Graham Artes reviewed Suntech’s accelerated capacity expansion plans and outlined Suntech’s unique path to low cost automation in PV cell and module production that will enable Suntech to scale to multi-gigawatt production while maintaining industry low wafer breakage rate and leading product quality. Mr. Artes guided attendees on a tour of the new 1GW production facility which features PV cell production lines that can easily be retrofitted to accommodate Pluto technology.
Chief Strategy Officer Steven Chan followed with a review of global dynamics fueling worldwide solar industry growth of well over 40% annually. Mr. Chan noted, “Suntech’s success in securing transformational silicon supply contracts is due to sourcing leverage from our strong financial fundamentals and global leadership role. Suntech’s recent and future long-term contracts reflect pricing that brings us closer to grid parity as we support early stage poly producers through the use of prepayments. We will continue to focus on building long term strategic alliances with numerous upstream suppliers.”
Attendees were addressed by special guest speaker Dr. Tihu Wang, Chief Executive Officer of Asia Silicon Co., Ltd. Suntech maintains an agreement with Asia Silicon to purchase high purity polysilicon with a total value of up to $1.5 billion over a seven-year period. Asia Silicon is in the process of building a state-of-the-art polysilicon plant in Qinghai, China with polysilicon production capacity targets of 2,000 metric tons by July 2008 and over 6,000 metric tons by the end of 2010. “Asia Silicon’s strong relationship with Suntech is a key factor enabling us to pursue our rapid capacity expansion plans. With our advanced technology and production process, low capital expenditure and secure access to inexpensive electricity, we are confident that Asia Silicon will develop to be one of the lowest cost producers of polysilicon,” said Dr. Wang.
Chief Technology Officer, Dr. Stuart Wenham, provided an overview of Suntech’s Pluto technology based on the PERL PV cell developed by the University of New South Wales in Australia. The PERL PV cell holds the world record in efficiency of 24.7%. Suntech’s 20% conversion efficiency Pluto technology is already achieving 18-19% conversion efficiency in pilot production on monocrystalline silicon wafers and Suntech expects to initiate commercial Pluto-based production in mid-2008.
Chief Financial Officer Amy Zhang concluded the Company’s prepared remarks with an overview of Suntech’s 2007 financial achievements, current Company guidance, planned cash flow management objectives and the potential for improving profitability. Ms. Zhang commented, “Potential margin improvement in 2009 and 2010 from higher cell efficiency, economies of scale and lower silicon costs can be leveraged to generate higher profits or to reduce average selling price and stimulate demand. As one of the lowest non-silicon cost per watt producers with minimal operating expenses and taxes, rapid capacity expansion will enable Suntech to penetrate new markets faster than competitors and expand market share rapidly to deliver grid parity solar solutions on a global stage.”
An archived webcast of Dr. Shi’s keynote address is available on Suntech’s website at http://www.suntech-power.com , Investors: Events.
About Suntech
Suntech Power Holdings Co., Ltd. is a leading solar energy company in the world as measured by both production output and capacity of solar cells and modules. Suntech provides solar solutions for a green future. Suntech designs, develops, manufactures, and markets a variety of high quality, cost effective and environmentally friendly PV cells and modules for electric power applications in the residential, commercial, industrial, and public utility sectors. Suntech’s majority-owned subsidiary, MSK Corporation is one of the top-ranked companies in the building-integrated photovoltaics (BIPV) space. Suntech’s customers are located in various markets worldwide, including key markets throughout Europe, North America, Japan and China. For more information, please visit http://www.suntech-power.com .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. In particular, the potential margin improvement in 2009 and 2010, expected efficiency gains from Pluto technology, the business outlook and quotations from management in this announcement, as well as Suntech’s strategic and operational plans, are forward-looking statements. Forward- looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
For more information, please contact:
Contact in China:
Rory Macpherson
Investor Relations Manager
Suntech Power Holdings Co., Ltd.
Tel: +86-510-8531-8922
Email: rory@suntech-power.com
Contact in the United States:
Sanjay M. Hurry
Vice President
The Piacente Group, Inc.
Tel: +1-212-481-2050
Email: suntech@tpg-ir.com
