Silico:)nLo>(ft & Solar Bells

28  May  2008

Through its subsidiary La Veneciana de Saint-Gobain, the Flat Glass Sector of Saint-Gobain has decided to extend its presence on the solar mirrors market. The plant extension at Covilis (Portugal) will enable the Group to supply the Iberian Peninsula’s thermo-solar market with parabolic cylindrical mirrors.This roughly EUR20 million capital expenditure project is fully in line with the Group’s solar strategy and will extend the current buildings (designed to produce extra-clear SGG ALBARINO patterned glass for photovoltaic panels) over a 12,000 msquared surface area. With its 19,000 msquared, the Covilis site will become the largest parabolic cylindrical mirrors plant in the world with annual production capacity corresponding to the supply of mirrors for 250 MW solar fields (five 50 MW fields). The plant will employ around 110 people.

The Covilis site was chosen for this major investment on account of the plant’s expertise as a manufacturer of specialized products for the photovoltaic and solar market. In addition, the Portuguese capital’s neighboring port provides maritime access to a number of export markets. With the first contracts already signed totaling tens of millions of euros, shipments will begin in the first half of 2009.

Saint-Gobain and the growth of solar business

Already the leading supplier of high-energy transmitting glass for traditional photovoltaic cells using crystalline silicon, Saint-Gobain is developing a complete product offering. This includes conductive-coated glass for new generation thin-film photovoltaic cells, solar-cells supplied through its joint subsidiary with Shell, flat and now curved mirrors for solar concentrators.

Saint-Gobain has developed curved mirrors for solar concentrators, a product which is particularly weather-resistant and provides installations with excellent long-term performance. Solar concentrators equipped with curved mirrors are very competitive compared with other solar-based energy-producing solutions. Business is expected to grow strongly, especially in southern Europe, the southern United States and in the Middle East.

The Flat Glass sector of Saint-Gobain, the European leader and number two worldwide, manufactures, processes and sells glass products for two main markets: building and transport. In 2007, it reported net sales of EUR5.6 billion. 

Organization name: Saint-Gobain
Country: France

By Steve Gelsi 
NEW YORK (Dow Jones) — Goldman Sachs on Tuesday slapped sell ratings on the two largest publicly traded U.S. solar power firms, with the broker flagging the possibility of oversupply as overseas subsidies dry up in the face of the global economic meltdown. 
Goldman analyst Michael Molnar forecast “strong headwinds for valuation” as he downgraded shares of First Solar (FSLR) to conviction sell from buy and SunPower (SPWRA) to sell from buy. 
Shares of First Solar fell 13.5% to $138.10. SunPower retreated 12% to $58.36. 
“The risk of oversupply in the solar market will soon become a reality as considerably less generous demand subsidies take hold just as a wave of supply and tight financing hit the market,” Molnar said in a note to clients. “We believe that liberal subsidies of the past in markets like Germany and Spain are unlikely to be replicated in the future given fears of their ultimate cost in a bad world economy.” 
As supply continues to come on line in a less favorable subsidy environment, prices will have to come down, putting pressure on profit margins. 
Goldman set a new price target of $103 a share for First Solar, well below its close of $159.71 a share on Monday. 
“(We) see multiples contracting as valuation implies more growth than will come even for one of the best solar companies in the world,” Molnar said. 
SunPower’s new price target is $43 a share, compared to its closing price of $66.34 on Monday. 
“Their installation business may perform well, but we see a consistent drag from the module business given lower industry pricing,” he said.