NEW YORK (AP) — Solar-products maker Trina Solar Ltd. said Wednesday it agreed to develop a $1 billion polysilicon plant by 2012 with assistance from the local government in the China's Jiangsu Province.
Trina expects to spend $150 million next year to finance the initial phase, the scale of which was trimmed from $455 million to create 3,858 tons of capacity. Trina did not say how much capacity is now targeted for the initial phase.
The company is ''examining several alternatives'' to lessen the impact of project financing on earnings, Chief Executive Jifan Gao said in a statement.
The Lianyungang Municipality will supply land and electric power for the facility, which is expected to have annual production capacity of 11,023 tons by the end of 2012.
By creating its own polysilicon plant, Trina will reduce its reliance on a tight market for the key solar-product feedstock for which prices have risen dramatically.
The company recently said its planned production output will be used for Trina Solar's own feedstock requirements and will only meet part of the total expected feedstock requirements to support future anticipated growth. Trina Solar said it will continue to be a net purchaser of feedstock materials and will continue to work with its long-term polysilicon supply partners.
Trina Solar shares rose $4.17, or 8.5 percent, to $53.15 in morning trading.