Canadian Solar Inc.
) has entered into a joint venture (JV) with GCL-Poly Solar System
Integration (China) Co., Ltd., a unit of GCL-Poly Energy Holdings
Limited for building a manufacturing site in Funing, Jiangsu
This agreement evoked a positive market reaction with the shares
gaining 2.44% to close at $26.05 yesterday.
The JV aims at manufacturing crystalline silicon solar cells at the
plant. Canadian Solar will own an 80% interest, while the balance
20% will be owned by GCL.
Initially, this plant will have a generating capacity of 300
megawatts (MW) per annum. Canadian Solar expects multi-crystalline
conversion efficiency to reach 19% by the end of 2014 at the Funing
plant. Post completion, the plant's production capacity will reach
1.2 gigawatts (GW) per annum. However, the expansion of the plant
following its initial phase is subject to market conditions.
GCL-Poly is a leading provider of polysilicon and wafer in the
solar industry. This latest agreement will help Canadian Solar to
manufacture and deliver top quality solar modules to its worldwide
customers. This partnership will expand Canadian Solar's cell
manufacturing capacity to a total of 1,560 MW from 1,500 MW at 2013
The company has recently started another module workshop in its
flagship factory in Jiangsu Province. This brings its total annual
module production capacity to 3 GW.
This U.S.-based company is also committed to expanding its domestic
solar market. In a separate release, Canadian Solar announced that
it will supply photovoltaic modules for South Carolina's first
solar farm - The Colleton Solar Farm. This plant is expected to
generate 4,556,000 kWH per year, which will be enough to power 300
Canadian Solar is a leading global manufacturer of high-efficiency
solar PV modules and provides the industry's maximum power
production per panel. It expects total annual shipments in the
range of 2.5 GW to 2.7 GW and total revenues in the $2.7 billion to
$2.9 billion band for 2014.
The demand for renewable energy is on the rise across the world
mainly due to greater consciousness among the masses regarding its
benefits. Solar companies like Canadian Solar and
First Solar Inc.
) among others are making the most of this favorable trend with an
increasingly diversified customer base.
Canadian Solar presently holds a short-term Zacks Rank #3 (Hold).
Other better-ranked solar operators are
JA Solar Holdings Co., Ltd.
Yingli Green Energy Holding Co. Ltd.
). While JA Solar holds a Zacks Rank #1 (Strong Buy) Yingli Green
Energy carries a Zacks Rank #2 (Buy).
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CANADIAN SOLAR (CSIQ): Free Stock Analysis
FIRST SOLAR INC (FSLR): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
YINGLI GREEN EN (YGE): Free Stock Analysis
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