Giga Solar aluminum paste shipments to decrease in 2011, says chairman

Due to low demand in the market, shipments of aluminum paste for solar cells are expected to decrease around 30% in 2011, said Chi-jen Chen, chairman of Taiwan-based conductive paste maker Giga Solar.Prices are expected to decrease around 5% compared to the level at the beginning of the year,added Chen. According to Chen, it is better to cut down production during downturns for the firm to stay healthy than to achieve pretty numbers on financial reports.

Capacity utilization of solar cells has been falling at the end of the third quarter and will likely continue throughout the fourth quarter, Chen pointed out. The company originally expected aluminum paste shipments to reach 3,500-4,000 tons in 2011,but due to the weak demand, the actual shipments are unlikely to reach 3,000 tons. The total shipments of the first to third quarters in 2011 were less than 2,000 tons, added Chen.

Giga Solar will continue to adjust conductive paste prices according to customer demand.But the firm hopes the price drop for the year will not exceed 20%.

Sales of silver aluminum paste were less than expected.The sales of silver aluminum paste in the first three quarters of the year did not reach 20% of total revenues.

Chen further noted that operations in the fourth quarter are likely to be more difficult than the third quarter.