Boston, MA 06/04/2014 (wallstreetpr) – Canadian Solar Inc. (NASDAQ:CSIQ) appears to be pulling all stops to enhance its production capacity. The company manufactures solar products and it anticipates big demand for the products in the near future given the widespread adoption of solar power solutions around the world.
In the latest move, the company is plotting a solar cells manufacturing facility in China in an investment that could bring its annual cell production to capacity to 1.56 GW. However, given that the adoption of solar energy is in its early stages, the company is careful not to burn its fingers through the capacity enhancement investments.
As such, Canadian Solar Inc. (NASDAQ:CSIQ) will not build its planned Chinese solar cell facility to full capacity until it has properly assessed the future of the market.
On that note, the company expects to achieve a production level of 60 MW in the new solar cell facility in the first instance. The facility will have an annual production capacity of 300 MW and fully building the site will lead up to 1.2 GW of solar cells annually. The Chinese facility will also help the company to improve the efficiency of its solar cells.
A big share in a joint venture
The planned Chinese solar cell project is a joint venture of Canadian Solar Inc. (NASDAQ:CSIQ) and GCL-Poly. GCL-Poly is a renowned producer of wafer. The companies will jointly build and operate the facility in Jiangsu Province.
The two solar giants expect their tie-up to lead to the production of top quality solar cells by taking advantage of their respective competitive advantages. Canadian Solar Inc. (NASDAQ:CSIQ) will own 80 percent stake in the project while GCL-Poly will own the rest.
Consistent revenue and profit growth
Canadian Solar Inc. (NASDAQ:CSIQ) maintained the growth of its revenue and profits in the most recent quarters. The company generated revenue of $466.3 million in 1Q2014, up 77 percent from a year earlier. Before the latest results, the company beat revenue estimates in two consecutive quarters. The latest revenue figure was in-line with the estimates.
Net earnings in the latest quarter perched at $4.07 million and compared with a net loss of $3.92 million in the same quarter a year earlier. The latest quarter marked the third straight quarter in which Canadian Solar Inc. (NASDAQ:CSIQ) posted a profit.
