Suntech will own 40% of the solar PV JV alongside Wuxi Industrial Development Group and Wuxi New District E&D Group. Suntech will contribute US$60m towards the equity investment in the JV.
A capacity of 600 MW is expected by mid-2011, with ramp up to 1.2 GW in 2011 or 2012 “depending on the demand outlook,” Suntech says.
Suntech Chairman and CEO, Dr Zhengrong Shi, says: “This joint venture will provide access to cost-effective PV cell capacity utilising Suntech’s high performance technology and reliable manufacturing processes, with reasonable cash outlay.
“It will also enable us to meet the growing demand for Suntech’s premium quality solar products.”
Suntech has also released its outlook for the full year 2010. It expects to ship more than 1.5 GW of solar products, and revenues are forecast to reach US$2.78-2.83 billion – a 64% year on year growth from 2009.
In terms of installed capacity, Suntech expects to see 1.8 GW of installed solar cell and module production capacity and 500 MW of installed wafer capacity.
Next year, Suntech projects shipment of 2.2 GW of solar products, with revenues reaching US$3.4-3.6bn.
Furthermore, it forecasts 2.4 GW of installed solar cell and module production capacity of which 600 MW of solar PV cell capacity will be owned and operated by the joint venture.
A 1.2 GW installed wafer capacity is projected for the end of 2011.