Renesola - Chinese Solar Panel/Silicon Recycling

Taiwan Motech, MEMC in silicon plant deal-paper

TAIPEI, May 22 (Reuters) - Taiwan's Motech Industries Inc. and MEMC Electronic Materials Inc. will jointly build a T$100 million ($3.1 million) silicon wafer plant on the island, a local newspaper said on Monday.
The Chinese-language Economic Daily News quoted Motech's chief executive officer, Simon Tsuo, as saying the plant would be completed in two years, ensuring a supply of silicon wafers to Motech for eight years.

Solar cell makers have benefitted from soaring profits and rising share prices as investors seek to increase their exposure to companies which develop alternative energy sources amid record oil prices.

But expansion plans of the industry worldwide have been hindered by a shortage of solar-grade silicon. An executive at Motech, which is the island's largest solar cell maker and ranks itself at No. 10 in the world, said talks on such a deal were underway, but that no final agreement had yet been signed.

He declined to confirm or deny the details reported by the newspaper.

"It's just a direction, so far the details haven't been finalised. We could finalise a deal by the end of June," said the executive, who spoke on the condition of anonymity.

Once the plant is completed, ownership will be transferred completely to MEMC, which makes silicon wafers used in solar cells and semiconductors, the paper said. The executive did, however, confirm that with the commencement of production at Motech's second plant with 80 megawatts in the third quarter and the expansion of its original plant to 120 megawatts, the company's annual output will be around 200 megawatts by year-end.

Motech's shares, which are traded on the over-the-counter market and have more than doubled this year as investors snapped up solar-power related issues, were down 0.12 percent by 0350 GMT, versus a 0.84 percent decline by the broader index . (US$=T$32.0)


Any ideas of possible implications for SOLA, seeing as Motech is one of our customers ? Your thoughts are appreciated cheers