Neo Solar Power upgrades annual capacity to 800MW

HSINCHU, TAIWAN: Neo Solar Power Corp. (NSP), a leading producer of high quality solar cells in Hsingchu, Taiwan, announced the Board-approved capacity expansion plan of 200MW,enlarging the company’s annual production capacity to 800MW.

The extra 200MW is expected to be completed in the end of Q3 or early Q4. Upon completion, NSP’s new capacity is expected to drive its revenue and profit to a new high in the near future.

For the original 360MW expansion plan, NSP had estimated a total capital expenditure of approximately NT$2.7 billion. The extra 200MW will likely require an additional expenditure of NT$1.4 billion. The funding plan for the total capacity expansion is well prepared and backed by the company’s ample internal cash position of NT$4 billion at the end of 2009.

In addition, NSP plans to conduct the capital-raising through one of the three options approved by the Board, including equity offering, GDR issuing, or the private placement. The total capital raising is estimated to be approximately NT$3 billion and will take place concurrently with the syndication loan. However, the actual funding plan will be decided in accordance with the market conditions.

With the bullish outlook for the solar industry in 2010, NSP actively maintains its production capacity expansion in line with the customers’ demand while reducing its manufacturing cost. Driven by its state-of-the-art technology and capable production management, NSP will deliver the best quality products with the most competitive cost, aiming to expand its market share and becoming one of the first-tier solar cell makers in the world.