Yingli Energy (NYSE: YGE) CFO Zong Wei said it plans to expand production capacity to meet demand at least four times in overseas markets. In addition, Yingli also plans to raise prices of about 3-5 percent to offset foreign exchange losses caused by the depreciation of the euro.
The report quoted Zong Wei said, "We will continue to expand the scale of production, since the end of June, we have received 2011 4 gigawatts orders." He said, adding that "while the current production capacity is estimated just over one gigawatt." In addition, the company will select some qualified subcontractors to meet the growing needs of the international market, but he declined to give further details.
New York-listed company in Hainan Province, started construction last month of a 100-megawatt capacity multi-crystalline silicon solar cell production plant. The new plant will cost more than 770 million, is expected to be completed in May 2011.
As an export-oriented private photovoltaic cell manufacturers, Yingli is now 90 percent of products are exported to the United States and Europe each year. Last year, Yingli solar products accounted for 10% of the German market share, and this country has the world's largest solar PV market. But the report cites the view of some analysts that Germany and other European countries may face PV market in the second half of this year fell sharply, as the government cut subsidies photovoltaic industry.
The report also said Zong Wei said, Yingli will not be affected, because the manufacture of photovoltaic solar panels polysilicon raw material prices will also fall. Meanwhile, in August Yingli has an annual output of 3,000 tons of refined silicon production plant put into use. "For companies such as Yingli, with the entire production chain, manufacturers, profit margins will not be compressed," Zong Wei said.
Yingli August 19 announced quarterly financial report shows that its second-quarter net income rose to 217.8 million yuan, gross margin reached a historical high of 33.5%.
In addition, Li Wei also revealed that Yingli has been developed in India, Australia and the United States of the potential market, to reduce dependence on European customers. Yingli also plans to raise prices to offset foreign exchange losses caused by the depreciation of the euro. He said, Yingli will increase the price of about 3-5 percent, is expected to bring increased from 50 million to 80 million U.S. dollars or so in revenue.