SCHOTT Solar Accelerates Expansion

SCHOTT Solar intends to increase the annual capacity for the production of receivers for solar power plants with parabolic trough technology (Concentrated Solar Power) by the end of 2009 to approximately one gigawatt. The annual production capacity of the joint venture WACKER SCHOTT is also planned to reach one gigawatt by 2012.

Parallel with the expansion plans the SCHOTT corporation is reorganizing so it can combine its competences in solar energy – both photovoltaic (PV) and Concentrated Solar Power (CSP) – under the roof of the SCHOTT Solar GmbH. The manufacturer made the announcement today during a press conference at the trade fair Intersolar in Munich. With this announcement the SCHOTT Solar GmbH is the only company worldwide that produces high-quality receivers for solar power plants with parabolic trough technology as well as components for PV-applications.

Dr. Martin Heming, Managing Director and CEO of the SCHOTT Solar GmbH, describes the corporate strategy: „We consider solar power plants to be one of the most important alternatives with which to secure future energy supplies. They are already able to provide entire cities with electricity, as successful examples in the USA have shown. Projects of comparable scope are being realized in Spain. In addition, solar power plants can be combined with fossil fuels or biomass sources of energy. This ensures a dependable power supply with a high proportion of solar power. SCHOTT Solar recognized the potential of CSP at an early stage and aligned its strategy accordingly. By combining all of the solar know-how of the SCHOTT corporation at the SCHOTT Solar GmbH, we are able to achieve even greater impact, while strengthening our profile as an integrated and globally active solar corporation.”

CSP- und PV-activities show growth In order to reach the planned annual production capacity of one gigawatt for receiver tubes, a key component of solar power plants with parabolic trough technology, SCHOTT Solar inaugurated its new plant in Aznalcóllar by Seville (Spain) at the end of May – in addition to the already existing facilities in Mitterteich (Germany). By the end of 2008 the company intends to double its production capacities at the new plant by starting up a second production line. In addition, SCHOTT Solar intends to manufacture receivers and solar power modules from 2009 onwards in Albuquerque, New Mexico (USA).

In May 2008 SCHOTT Solar inaugurated new production lines for solar power modules at the traditional production location Valašské Meziříčí in the Czech Republic. With this second expansion phase the production capacity at this location is intended to increase to over 200 MW by the end of 2008, which would equal a fourfold increase in a short time. The corporation intends to continue to rapidly increase its crystalline PV business at a number of locations in the future. Last year, SCHOTT Solar constructed a state-of-the-art production facility for thin film solar modules in Jena (Germany) with an annual module capacity of approximately 33 megawatts (MW). The company plans to increase its production capacity for thin film modules over the next several years in Germany to nearly 100 MW. Dr. Gerrit Sames, Managing Director and Chief Operating Officer (COO) explains his view of the production strategy: “Together with our facilities manufacturers we have continuously developed our proprietary manufacturing technologies in both business units. Now, through our rapid expansion, we can create more efficient processes. At the same time we can realize advantages of scale.”

Internationalization moves consistently forward The expansion plans in Spain, the USA and the Czech Republic underscore the strategy of internationalization at SCHOTT Solar. “With our production locations in Europe and the USA we have, in our view, a local presence in the major markets for solar technology,” says Heming. “In our opinion, the production of receivers and solar power modules must take place in the proximity of the regional target markets. The reason for this is primarily one of logistics. It is more cost efficient – and, as an add-on, uses less CO2 – than transporting final products over large distances.” Beyond internationalizing its location structure SCHOTT Solar has increasingly aligned its sales activities on a more global scale. Recently signed, long-term contracts with Enel.si (Italy), Fujipream (Japan), Saclima (Spain) and Thinksolar (USA), serve as examples for this. “This doesn’t mean, however, that we turn our backs on our big German sales partners,” explains Michael Harre, Managing Director and Chief Sales Officer (CSO) of the SCHOTT Solar GmbH. “They will continue to comprise a significant portion of our sales portfolio and we want to continue our strong national and international growth together with them.”
Alliances strengthen foundation for accelerated growth Besides expansion of its own production capacities, strategic alliances are another successful component in the recent corporate development of SCHOTT Solar. With the joint venture with WACKER Chemie AG, founded in October 2007, SCHOTT Solar plans to implement its expansion plans in crystalline photovoltaics even more rapidly. This partnership secures the long-term supply of silicon, the currently scarce basic material for solar modules, for SCHOTT Solar. By 2012 the joint venture WACKER SCHOTT Solar is scheduled for an annual production capacity of one gigawatt at the locations in Jena and Alzenau (Germany).

Together with the ersol Thin Film GmbH, SCHOTT Solar is developing micromorphous technology for thin film cells, which should significantly improve efficiency. The two companies will pool their research and development activities in this sector, in order to get mass produced products to market more quickly. And SCHOTT Solar doesn’t exclude additional strategic partnerships for the future. “In our opinion, meaningful cooperations lead not only to advantages in scale, but also to cost savings. Also, partnerships should help us to bring innovative products to market more quickly while also opening new markets in an expedient manner,” says Managing Director and CFO Dr. Jürgen Kaiser-Gerwens. “It is for these reasons that we will continue to carefully observe the market while remaining open to further partnerships.“

Careful optimism regarding to changes in the Renewable Energy Act Prof. Dr.-Ing. Udo Ungeheuer, Chairman of the Management Board of the SCHOTT AG, exhibited careful optimism regarding the Federal German Government’s recent attempts at intending to change the Renewable Energy Act (EEG): “A stronger decrease in subsidies naturally increases the pressure to innovate. It is, however, much more important that solar energy will continue to be expanded, at least as it currently stands. In addition, the basic idea behind the EEG regarding a decentralized, clean and sustainable energy supply continues to be of prime concern in the public policy debate. German companies can expand their favourable technological position, invest in technical development and generate new jobs.”