SAN JOSE, Calif. China's Trina Solar Ltd., a manufacturer of solar photovoltaic products from the production of ingots, wafers, cells and modules, has discontinued the development of its previously- announced $1 billion polysilicon production facility.
The company also announced that its related equipment supply contract with GT Solar Inc. will lapse as a result of the move.
The company's decision to discontinue the development of a polysilicon production facility at Lianyungang, Jiangsu province was due primary to changes in market conditions. For years, polysilicon has been in short supply, but there are signs that the supply-demand issues are slightly changing.
As a result of recent favorable changes in the polysilicon supply environment, Trina Solar (Changzhou) now believes it has greater access to polysilicon feedstock to support its growth objectives. To address its forward polysilicon requirements, the company will continue to sign long term contracts as a means to meet its strategic supply needs.
"We have made this strategic decision after careful assessment of our raw material requirements, in conjunction with recent and favorable long term polysilicon market and supply condition developments," said Jifan Gao, Trina Solar's chairman and CEO, in a statement.
"Furthermore, we wish to reaffirm our strong working relationship with our partner GT Solar, which continues to provide us with advanced multicrystalline technology platforms to support our target of 350MW of annualized module capacity by the end of 2008," he said.