Canadian Solar Inc. (CSI) (Nasdaq: CSIQ) announced it has completed and commissioned the Phase I of its ingot and wafer plant on schedule, giving the company an annualized ingot and wafer capacity of 60 megawatts (MW). Phase II of the ingot plant is expected to be completed by year-end, ahead of the original schedule, the company said. This will bring the Company’s ingot and wafer capacity to 150-200 MW.
In further developments, Canadian Solar’s 250 MW Phase II cell plant will also be completed in October, with the next stage to begin immediately thereafter. As of October, CSI’s current annualized capacity is 220 MW and is expected to reach the target of 400 MW by the end of December, also ahead of schedule.
Both new plants are fully financed and fully supplied with both wafer and feedstock for 4Q08. This will enable the company to produce 45-50 MW of polysilicon cells and UMG e-Cells internally in 4Q.
In light of these recent developments, CSI is reiterating its top-line revenue and gross margin guidance for 2008 of $850-$970 million and 13%-15%, respectively.
For 2009 the company believes that it has secured approximately 4,000 metric tons of UMG, enabling it to produce between 250 and 300 MW of UMG e-cells and e-Module in 2009. The company reiterated its shipment and gross margin guidance for 2009 of 500 – 550 MW and 13 – 15%, respectively.
Chairman and CEO Shawn Qu said, "Demand remains high for both of our regular high-efficiency modules and our proprietary e-Module products. ASP’s are expected to remain stable for the balance of the year and the raw material prices have begun to ease. The increased internal production capacity in 4Q will contribute meaningfully to our gross margins and will help us to reach our revenue and margin targets in spite of volatility in the Euro. Our highly flexible vertical integration model is robust; and has allowed us to quickly adopt to the market dynamics. We expect to be able to continue to meet our objectives for 2009 and are cautiously optimistic that there is upside potential in our ’09 estimates."
New Contracts
CSI also announced that it has signed two sales contracts with Iliotec Solar GmbH and Iliotec Solar International. Through these two contracts, Iliotec will purchase from CSI 28 MW of solar modules and obtain the option for another 20 MW for delivery in 2009, with module prices fixed for the first six months.
Iliotec Solar GmbH has been a continuous customer of CSI since 2005. Iliotec Solar International designs and implements solar projects around the world.
About Canadian Solar Inc. (NASDAQ: CSIQ)
Founded in 2001, Canadian Solar Inc. (CSI) is a vertically integrated manufacturer of solar cell, solar module and custom-designed solar application products serving customers worldwide. CSI is incorporated in Canada and conducts all of its manufacturing operations in China.
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