INTERVIEW - Germany aims to overtake Japan in solar wafers
Date: 25-Feb-02
Country: GERMANY
Author: Claire-Louise Isted
A wafer, rather like a computer chip, is cut from solar silicon to produce solar cells, which are then used to convert sunlight into electricity.
"We estimate that our Japanese competitors will have a wafer production capacity of 96 megawatts (MW) by the end of this year, while we expect to reach 120 MW by then," SolarWorld Chief Executive Officer Frank Asbeck told Reuters in an interview.
SolarWorld's subsidiary, Deutsche Solar AG, is Europe's biggest manufacturer of solar silicon wafers and has a global market share of around 20 percent.
Based in Freiberg, in the eastern German state of Saxony, which SolarWorld calls the future "Silicon Mountain" in Europe, more than a third of Deutsche Solar's wafer output is earmarked for the Japanese solar power generation market.
Deutsche Solar aims to increase its production capacities for solar silicon wafers to 80 megawatts by mid-2002 and to 120 MW by late 2000, up from it previous target of 100 MW by year-end, Asbeck added. World production of solar modules was 350 MW last year.
While Japan is currently the world's leader in solar technology, including the production of solar wafers, Asbeck expects a fall in the rate of production by his firm's Japanese competitors in view of a slowdown in that country's economy.
SOLAR SILICON JV IN SIGHT
Asbeck told Reuters last October that he planned a joint venture with a leading chemicals firm to produce silicon for use in solar power cells.
While he would not confirm rumours that its partner would be German chemicals giant Degussa , Asbeck said he expected to announce details of the deal within three months.
Solar grade high-purity silicon, used in crystalline solar cells, is the basic material for the photovolatics industry.
The sector has been able to take advantage of an increased surplus of electronic grade silicon, which can be used as an alternative material, because of the slowdown in the computer industry that has led to a slump in demand for semiconductors.
But that surplus is forecast to decline in 3-5 years as the computer sector recovers, Asbeck said.
SolarWorld plans to have full onstream production of 5,000 tonnes/year of silicon by 2004-5, when demand for semi-conductors is likely to have started rising again, he added.
BOOMING TURNOVER
SolarWorld's turnover increased 118 percent last year to 35.9 million euros, while Deutsche Solar's turnover rose by 42.5 percent to 54.3 million euros, the firm said last week.
Asbeck said the firm will announce in April the 2001 results of the entire holding company, which also includes its Swedish solar module producing unit Gallivare and German wind power plant manufacturer WindWelt AG .
SolarWorld increased its share in WindWelt by 20 percent to 85 percent in January.
The firm said last week it had completed the conversion of Deutsche Solar into a joint stock company (AG). It acquired the unit in mid-2000 from German chemicals firm Bayer .
Through a capital increase, the unit's equity capital will be raised by 10 million euros to 30 million euros, taken from company reserves.
