First Philec to put up biggest solar wafer plant in Asia

MANILA, Philippines - First Philec Solar Corp. (FPSC), a joint venture between Lopez-owned First Philippine Electric Corp. (FPEC) and California-based SunPower Philippines Manufacturing Ltd. (SPML), will spend $100 million to put up the biggest solar wafer manufacturing firm in Asia.

FPSC is the sole manufacturer of solar wafer in the country.

FPSC president and CEO Dan Lachica told a press briefing yesterday that the company has already spent $40 million to finance the plant’s initial production.

FPSC’s existing facility and planned Phase 2 expansion unit are located at the First Philippine Industrial Park in Sto. Tomas, Batangas. The expansion will also double its workforce from 535 to over 1,000.

During its first full year of operations in 2008, FPSC generated revenues of $52 million and net profit of $336,000.

FPEC is a wholly-owned subsidiary of First Philippine Holdings Corp. (FPHC) while SPML is the Philippine subsidiary of SunPower, the world leader in silicon technology conversion efficiency.

The company, which began operations in June 2008, operates the first large-scale silicon wafer-slicing company in the Philippines.

At full build, the factory will churn out 240 million silicon wafers a year for two SunPower plants and other customers using 100 highly automated wafer slicing machines to support approximately 720 megawatts of solar energy.

Lachica said the global solar industry is projected to grow by about 30 percent this year.

“From our standpoint, we’re still bullish about pursuing expansion projects because the demand is there. Additionally, US growth is being stimulated by President Obama’s policy of giving incentives for the solar industry, including low-interest loans and extension of the income tax credits.”

The company will utilize loans, internally generated funds and additional equity of approximately $20 million to complete its Phase 2 expansion, covering a new building and equipment.

It is also gearing for overseas expansion where demand for silicon wafers is expected to increase.

“We have also been able to adapt and/or develop new technology that enabled us to overtake our competitors who have had more years of experience in this industry. We had early challenges with expensive raw materials but we have addressed this with process, equipment and material innovations, Lachica said.