PVCS.L Share News (PVCS)

Solar wafers supplier PV Cyrstalox Solar says that there are signs of a strengthening in demand for its wafers. Shipment volumes of wafers are expected to be 350MW for the full year, against earlier estimates of 320MW-340MW. This has enabled PV Crystalox to operate at full capacity in the second half of 2010. Average selling prices of wafers have been maintained at the same level as in the first half. Sales are growing in Taiwan and they should be one-fifth of fourth quarter volumes. The company's polysilicon production facility is ramping up production and the production cost is lower than buying from external suppliers. It still needs external suppliers because of the rising volumes and a new five year contract has been signed with one of these suppliers. The increase in ingot production from 400MW to 500MW should be completed at the Milton Park facility early next year and PV Crystalox is already considering further increases in capacity with a target of 800MW by the end of 2012. Capital investment will reduce the company's net cash figure to around €50m at the end of 2010.Photovoltaic (PV) installations are expected to double this year and reach 14-16GW by the end of 2010. PV Crystalox expects double digit growth in installations in 2011.