Equation to Acquire Solar Morph, Spearheading Singapore’s First Thin Film Amorphous Silicon Panel Plant
Singapore is set to launch its first solar panel manufacturing plant using Thin-Film Amorphous Silicon Technology in the fourth quarter of this year – making it the first country in this region to operate one. The 10,000m2 plant, utilising a fully automated manufacturing process with a final annual capacity of 60MW, is expected to employ 200 high-tech skilled operators and engineers when fully operational.
Equation Corp Ltd., through its newly-acquired subsidiary Solar Morph Pte. Ltd. ("SolarMorph"), will undertake the construction and operation of the plant in Singapore, commencing with establishing a 20MW manufacturing line by mid-2008 and continue to expand to its full 60MW annual capacity by 2010.
The initial 20MW plant will require S$120M to build. SolarMorph intends to fund the plant with S$60M in equity and the remaining through debt financing. To-date, SolarMorph has completed its first round of fund-raising - obtaining investments and commitments for S$16 million in funds, led by Tembusu Ventures through its affiliated fund, Tembusu Capital.
Under its investment agreement with SolarMorph, Equation Corp will take an initial stake representing 69.6% of the voting rights in SolarMorph with an initial investment of S$15.5 million. Equation Corp will be issuing convertible bonds which are partially convertible into shares in Equation at the conversion price of S$0.355 to partially fund this initial investment. Equation may inject further investments in SolarMorph up to an aggregate of S$48 million. Equation will further assist to raise S$90 million in debt financing for SolarMorph.
Groundbreaking of the plant is scheduled to take place in fourth quarter of 2007. Production is scheduled to start in July 2008 and will be ramped up to full capacity by early 2009. SolarMorph has already secured a three-year off-take agreement worth US$120 million.
Thin film amorphous silicon technology is said to be one of the latest initiatives in harnessing solar power using a fully automated manufacturing process and enhancing delivery in terms of lower costs and increased reliability. It is claimed that thin film amorphous silicon technology uses 3-5 times less energy and use less than 1% of silicon than the traditional crystalline technology, which is currently being used by solar panel manufacturers.
