The Hindu Business Line : Solar Semiconductor bags $575-m order from Germany firm

Hyderabad, March 27 Solar Semiconductor, a photovoltaic (PV) module maker has bagged a $575- million (about Rs 2,300 crore) order from IBC Solar, Germany.

The two companies have announced a strategic partnership, which entails Solar Semiconductor to supply high quality, PV modules over the next three years.

The €500-million turnover IBC Solar, which is among the top few distributors and systems integrator of solar PV products, expects to meet the demands of its customers across Europe and the US with the standard products to be rolled out of the facilities of Solar Semiconductor, said Mr Oliver Kaczmarzik, Project Manager (Solar Modules).

Announcing the partnership at a news conference, Mr Hari Surapaneni, Chief Executive Officer (CEO) of the Hyderabad and California-based Solar Semiconductor, said plans are to ramp up the manufacturing capacities of the company from 30 MW to 200 MW by year-end.

Fab City plans

A total of $100 million is being invested into the expansion. It includes the addition of a 20 MW unit to the existing 30 MW in Kompally. Further, a major facility would be established in the Fab City, where the company has been allocated 100 acres by the Government of Andhra Pradesh.

About 50 acres has been acquired, necessary equipment ordered, a contractor finalised and final approval was awaited from HADA (Hyderabad Airport Development Authority), to begin construction. “We are confident that production would start from July,” Mr Hari said.

The funds would be raised through debt and equity. Solar Semiconductor has made a commitment of $30 million in equity and the balance was committed by investors from the US, Germany and Europe, he said.

New markets

Solar Semiconductor exports almost its entire production to Europe (Spain, Italy and Germany) and the US. It is exploring newer markets in Africa, Mexico and so on, said Mr Nava Akkineni, Executive Vice-President.

The company hopes to reach Rs 1,200 crore business by year-end, up from Rs 50 crore last year (beginning September 2007). The growth is expected, as the company has in hand contracts worth over Rs 3,000 crore to be executed by 2010, he said.

There was buoyancy in the global market for solar energy, with the size estimated at around $15 billion in 2007. It is projected to touch $100 billion by 2010. This gives scope for several players in the solar space to grow fast, Mr Nava said.

New CFO on board

Solar Semiconductor has appointed Mr Perry G. Hayes, as its Chief Financial Officer (CFO). He was Senior Vice-President (investor relations and treasurer) with Solectron Corporation.

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