INTERVIEW-China's Suntech says '09 output to rise 60 pct

Published: 17 Feb 2009 01:49:19 PST

BEIJING, Feb 17 - China's Suntech Power, the world's largest solar module maker, said on Tuesday it expected production to rise 60 percent this year to at least 800 megawatts, despite a slowdown in bank lending to the sector.

Shi Zhengrong, the founder and chairman of Suntech Power Holdings Co, said, however, that the financial crisis was affecting his industry, leading to a 20 percent cut in prices since the third quarter of last year.

"We have already signed over 600 megawatts of contracts with our European customers," Shi told Reuters in a telephone interview.

"We are still aiming for at least 800 megawatts of production for this year," he said. The entrepreneur said production was about 500 megawatts last year.

Suntech, which makes the panels that turn sunlight into electricity, expects full-year 2008 revenues of between $1.91 billion and $1.93 billion.

Financing for new renewable energy products has become difficult as banks around the world have tightened lending amid the worst economic slowdown in decades.

"Prices have already fallen 20 percent from Q3 last year," he said, referring to the third quarter, but he added that prices have since stabilised.