World's biggest cell complex can lift firm's output 4-fold
Ronnie Lim 22 Apr 10;
(SINGAPORE) Some sunshine is breaking through again after a dreary 2009 for solar cell makers.
And Renewable Energy Corporation's new solar manufacturing complex at Tuas - which is 'now close to completion' and built at a significant 22 per cent cost savings of S$2.6 billion (from an original estimated S$3.4 billion) - is expected to boost the Norwegian group's competitiveness this year.
Providing this Singapore update in its latest Q4, 2009, financial report, REC said that the Tuas facility - which will be the world's biggest solar cell complex - could support close to a four-fold increase in the group's production volumes 'if the market allows'.
'The new plant will allow REC to increasingly offer products that will compete with traditional, grid-based electricity. REC's ambition is to achieve manufacturing costs of below one euro per watt in the new Singapore plant,' it said.
REC, which sank in the first piles for the Tuas complex in June 2008, said that 'progress has continued to be good in the construction . . . and production line equipment installation, and testing has run according to plan'.
Marking what it considered a significant positive development, REC said that 'Singapore has been below budget and on schedule', compared to its other expansions back in Norway.
The Tuas complex will manufacture the entire gamut of wafers, solar cells and modules.
REC said that production of the solar cells has already started this year at the first of eight production lines here, while the first of four production lines for modules is expected to start up in Q2. Wafer production is expected to commence in Q3, it added. 'Production ramp-up will be aligned to market demand and prudent working capital management,' it said.
Singapore will increase REC's wafer production by about 40 per cent, cell capacity by 240 per cent and module capacity by almost 400 per cent.
'Overall, the Singapore project is expected to increase REC's total nameplate wafer capacity to approximately 2.4 GW (gigawatts) and nameplate solar cell and module capacity to more than 700 MW when fully up and running in 2011.'
On market outlook, REC said that global demand for solar cells which was weak last year - as a result of supply exceeding demand, and adverse effects of changes in renewable policies in key markets - improved at the year-end.
Demand growth this year will depend on the effect of changes in renewable policies, and REC expects a global module demand growth in the lower end of the 7-10 GW estimated by analysts. So while its new Singapore facility will provide it with a four-fold increase in capacity this year 'actual cell and module production will be aligned with overall market conditions and product demand', it stressed.
Nevertheless, while 2010 will mark a year of ramping up of capacity, its new expansions - including in Singapore, the US and Norway - which will be in full production from mid-2011 'will form a solid base for future competitiveness', especially with market growth expected to return in 2011.
REC meanwhile is still continuing to recruit for its Singapore complex, which needs 1,350 people.
Staffing at its wafer plant here is expected to reach about 300, while the cell plant will employ about 400. The headcount at its modules plant will be about 650.
