26 replies to this topic

[sunnysky]

CSIQ will, according to the report, deploy the newest technology and equipment and at same time retire part of their old capacity.  GCL is doing the same thing except it is for 300 MW of wafer.

 

http://solar.ofweek....0-28759937.html

[explo]

Interesting, thanks. The trend we see in capex use is to make existing capacity more efficient, by either upgrade or replacement. Especially cell and wafer equipment see very little net additions, while module still see some net expansion together with upgrade and retirements. It all makes sense, since upstream capacity has not been very profitable, so upgrading to enable better cells at lower cost instead of adding equipment probably offers better return on investment, while adding (cheaper) module capacity to meet demand still offers goods return on investment.

[sunnysky]

Yeah, this will bring their cell capacity close to 1.7 GW. That along with better technology will help to drive down module cost a bit further.  

[explo]

Yes, I like the rational behaviour during this cycle. Efficiency instead of volume is the focus for capacity. Inefficient capacity gets quickly retired. We get a concentration of efficient capacity at the hands of tier 1 companies.

[odyd]

Yeah, this will bring their cell capacity close to 1.7 GW. That along with better technology will help to drive down module cost a bit further.  

It would be interesting to understand what type of cell those lines are. Sunny CSIQ has 1.5GW of own cell capacity are you speculating they will retire 100MW? Is there any connection between GCL wafer and CSIQ cell plants or just coincidence of location? I could not figure this out.

[odyd]

I am working to have an interview with GCL, I let you guys know if I get the progress. 

[Pop2mollys]

I am working to have an interview with GCL, I let you guys know if I get the progress.

Amazing! I hope they agree to it!

[explo]

I am working to have an interview with GCL, I let you guys know if I get the progress. 

 

That would be very interesting. Always good to know what's on big daddy's mind.

[sunnysky]

It would be interesting to understand what type of cell those lines are. Sunny CSIQ has 1.5GW of own cell capacity are you speculating they will retire 100MW? Is there any connection between GCL wafer and CSIQ cell plants or just coincidence of location? I could not figure this out.

 

I think it looks like a connection here. 100 MW is purely my speculation.

[odyd]

Is there any connection between GCL wafer and CSIQ cell plants or just coincidence of location?

After asking this question, I am thinking that is a joint effort, normally that how GCL operated with CSIQ before.

[odyd]

I think it looks like a connection here. 100 MW is purely my speculation.

thanks. I am curious if this has something to do with it. CSIQ is one of the couple I think companies introducing this technology. Japanese presence requires face to face competition with Panasonic HiT modules. It seems only natural to be involved in this.

http://www.i-microne...le.asp?id=11239

[joshchang]

http://www.funing.go...9310752263.html

 

Looks like CSIQ is targeting 1GW cell expansion in Funing. All news pointing out CSIQ and GCL are together in this (1GW cell for CSIQ and 1GW wafer for GCL). So my guess is that GCL is building 1GW (300MW for phase 1) just for CSIQ there and CSIQ might have a stake in the wafer plant as the JV partner there. 

[explo]

Good news that CSIQ is adding in-house capacity to supply their module production. Smart to just provide financing and leave operation of wafering to GCL by JV. By accepting ownership risk they will get the cost benefits. They might need to issue some equity as Chinese banks are not accepting high leverage of production capacity investments now, but they'll get a great price for their stock now.

[joshchang]

Good news that CSIQ is adding in-house capacity to supply their module production. Smart to just provide financing and leave operation of wafering to GCL by JV. By accepting ownership risk they will get the cost benefits. They might need to issue some equity as Chinese banks are not accepting high leverage of production capacity investments now, but they'll get a great price for their stock now.

I think the stake in JV will be similar to what they are doing (10%) now. Yes, for operational and production capacity expansion it will be much harder to get the financing. But I don't mind a 6% dilution at $50 to get $150m, which would be almost 40% dilution for SOL to get similar equity from stock offering.

[sunnysky]

Great news, thanks Josh.

[odyd]

Also if it is build in phases, money may not be an issue.  We have to see. 

[nanofrogfish_spf]

Good info all...thanks

 

Speaking of adding capacity...any word or update on the manufacturing facility in London, Ontario announced the middle of last year to produce modules and power stations as part of the Samsung agreement?...or what the projected capacity of this is?

 

Also, just noticed they updated their IR presentation on Jan 13 (although the presentation is dated Dec 16th)...sorry if I missed this being mentioned before. Not much has changed that I could see (just skimmed it), but it is interesting that they added a slide that shows 2013 stock performance relative to peers (slide 23). It's one of those examples of a picture being worth a thousand words...

[Pop2mollys]

Good info all...thanks

Speaking of adding capacity...any word or update on the manufacturing facility in London, Ontario announced the middle of last year to produce modules and power stations as part of the Samsung agreement?...or what the projected capacity of this is?

Also, just noticed they updated their IR presentation on Jan 13 (although the presentation is dated Dec 16th)...sorry if I missed this being mentioned before. Not much has changed that I could see (just skimmed it), but it is interesting that they added a slide that shows 2013 stock performance relative to peers (slide 23). It's one of those examples of a picture being worth a thousand words...

Yes nano. I have to say you are the man for holding CSIQ from 2 till now. Congrats. Any thoughts of picking up any others solars or are you staying solely with the beast?

[spiritcraft]

Yes nano. I have to say you are the man for holding JASO from 2 till now.

You mean CSIQ correct?

[joshchang]

Yes nano. I have to say you are the man for holding JASO from 2 till now. Congrats. Any thoughts of picking up any others solars or are you staying solely with the beast?

Pop, are you planning to buy back some CSIQ when the 1 month wash sale period expires?