As the original price of polysilicon materials quickly fell, so that Suntech’s thin film solar cells losing competitive advantage. Mainland media reported that Shanghai based Suntech recently discontinued thin film solar cells, changing the production of polysilicon solar cells. Outsiders estimate their losses at about 5,000 million U.S. dollars to 5,500 million. Control in 2009 Suntech Chairman and CEO Zhengrong Shi has repeatedly said in public is not optimistic about prospects for thin film solar cells say, now seems, the decision seems to be traced.
2008 to wash washed down the price of polysilicon; the price plunged from 500 U.S. dollars per kilogram for the current 55 dollars per kilogram, to promote the cost of polysilicon solar cells on the cut in the last three years and a half. Compared with this, the film cost too much battery only 10% less than in 2008, thin film solar cells demands the cost advantage of not usually highlighted, as previously.
Shi Zhengrong fanfare in May 2007 announced plans to invest 300 million U.S. dollars developing thin film solar cells and make 2010 an annual capacity of 400 megawatts (MWp) target. However, according to some industry sources, 2009, Suntech’s Shanghai thin film solar cells production base, output are rare, and in 2009 Suntech’s polysilicon solar cell shipments of 700 megawatts could be said to be worlds apart.
However, the cut-off the action Suntech is still the industry by surprise. It is reported that in July 2009, Shanghai government has said public information web site, Suntech Pujiang Hi-Tech Park in the thin-film solar cell base is nearing completion of a production, no relevant information on this point later.
June 2010 Dr. Shi also told mainland media said that the thin film solar cell factory is still producing. However, in the meantime, Suntech also announced that will invest 2.68 billion Yuan in Shanghai, divided into 3 years to build production capacity of 1,000 megawatts of polysilicon production base of the battery module. It is understood that the base is the base of the seat of their thin film solar cells.
The outside speculated that Suntech is to take advantage of this approach better market conditions, coupled with significantly lower cost polysilicon occasion, the rapid expansion of production of polycrystalline silicon solar cell modules. But because the current high cost of land and want to find a suitable plant site is not easy, he decided to film polycrystalline silicon solar cell base into a base for solar cells.
According to the media quoted an insider as saying that in Shanghai, Suntech’s thin film solar cell production equipment to be purchased from Applied Materials, the production line of thin-film solar cell output, the conversion rate of 7%, however the general conversion rate of polycrystalline silicon solar cells but more than 15%, the user naturally choose the latter.
However, market participants believe that Suntech announced the cut-off time point fairly draw the line well, because half of 2010, robust demand for polysilicon solar cells, Suntech has sufficient financial resources so that the light of the large-scale restructuring, if the underperformance in 2009 When ordered a halt to production, will give Suntech the tight financial situation even worse.