Neo Solar Starts Expansion Ahead of Schedule to Meet Brisk Orders

Taipei, March 24, 2011 (CENS)--Neo Solar Power Corp. recently decided to launch an expansion project, originally slated for 2012, in the second quarter this year to meet brisk contract orders that have already inundated the company's production lines.

With the expansion advanced, the company's output capacity of solar cells is estimated to surge to 1.8 gigawatts by the end of the year, up from planned 1.3G in mid-2011 and 820 megawatts for the moment.

Industry executives estimated the capacity of 1.8 gigwatts would enable Neo Star to outstrip all its domestic competitors in Taiwan.

The bold expansion has triggered fears that the festering oversupply worldwide will be compounded. Neo Soar Chairman Quincy Lin responded that despite supply glut enduring since last year, many solar cell makers around the world remain short of capacity mostly thanks to their brilliant competitiveness. He added that many solar cell factories in Europe are already inefficient and most Japanese makers in this line run the production at expensive costs.

Lin said his company had secured contracts that are far more than the company's existing production capacity, prompting his company to start its 2012 plan ahead of schedule.

Additional capacity will not contribute much to the company's sales this year since the installation will be completed at yearend.

In addition to expansions at solar cell factories, the company is set to spend around NT$2.75 billion (US$91.6 million at US$1: NT$30) to set up crystalline silicon production lines to support its solar cell business. The production is planned to amount to 300 megawatts by the end of this year, supplying 30% of the needs of the company's solar cell operation.