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Giga Solar acquires solar power station in Japan

Giga Solar acquires solar power station in Japan

Taipei, July 4 (CNA) Giga Solar Materials Corp. (??), a Taiwan-based solar cell material supplier, has acquired a solar power generation station in Fukuoka Prefecture, on Japan's Kyushu Island. Giga Solar said that it spent 1.8 billion Japanese yen (US$14.51 million) to acquire the solar power station with a capacity of 4MW. Market analysts said the acquisition showed that the Taiwanese firm expects rising global demand for green energy this year. According to a research report released by Taipei-based market information advisory firm TrendForce Corp., the worldwide installation of solar energy equipment in 2015 is expected to hit 52GW, up 18 percent from a year earlier. Construction of the solar power station in Fukuoka is still under way and is expected to be completed by the end of this year. The transaction followed the blueprint established by Giga Solar's earlier acquisition of a solar power station in Fukushima, which started commercial production in late May. According to Giga Solar, after the start of mass production at the Fukuoka plant, the company will own total power generation capacity of 21MW in Japan. Analysts said that the investments in solar power generation facilities will ensure Giga Solar has an alternative long-term sales source. They also noted that a solar power station could have a life span of 20-25 years, during which time Giga Solar is expected to make stable profits. Analysts said that Giga Solar could potentially enjoy as much as a 50 percent gross margin from its Fukushima power station investment, which will further strengthen the company's bottom line at a time when solar energy product prices have been rebounding after recent falls. On the back of recovering product prices, Giga Solar is expected to leave behind the effects of the traditionally slow first quarter of the year and post higher sales in the second quarter, analysts said, adding that consolidated revenue in the second quarter could hit NT$3.5 billion (US$113 million), a fresh quarterly record. Even better, the company's sales for the third quarter could rise further to about NT$4 billion, another record. In the first quarter, Giga Solar posted NT$2.82 billion in consolidated sales, a 7 percent fall from the previous quarter. Amid growing optimism over earnings projections, shares in Giga Solar rose 1.05 percent to close at NT$578.00 on the local over-the-counter (OTC) market on Friday, outperforming the OTC index, which fell 0.09 percent. (By Jackson Chang and Frances Huang)

Updated : 2021-09-17 21:05 GMT+08:00