By Kim Yoo-chul
Staff reporter
Hyundai Heavy Industries, the world's biggest shipyard, aims to generate 2 trillion won ($1.7 billion) in revenue from its solar-related businesses by expanding production capacity.
The Korean shipbuilder said it is planning to almost double the capacity of its module and solar battery production to 600 megawatt in its domestic plant in Eumseong, North Chungcheong Province.
Currently, Hyundai is equipped to produce solar modules with a total combined output of 320 megawatts annually, below its full capacity of 370 megawatts, a company spokesman Jo Sung-woo said.
The shipbuilder plans to finish the expansion process by the early 2011. Hyundai said the expanded production will enable the supply of solar generated electricity to 200,000 households.
``The rising demand for solar products because of a rising demand in Germany, Italy and the Czech Republic, has not been met by supply growth,'' Jo said.
``We are looking to get additional orders from Europe and the expansion will help us reach 2 trillion won in sales and increase annual production by 2012,'' he said.
An estimate by the European Photovoltaic Industry Association (EPIA) notes that the global market for solar modules will rise to 30 gigawatts by 2014 from an expected 13 gigawatt this year.
Hyundai Heavy is putting more focus on its solar-cell related business as part of corporate efforts to find new growth engines amid continued uncertainties in the global shipbuilding market.
Since June this year, it has been producing 3,000 tons of polysilicon demos via a joint venture with KCC.
Polysilicon wafers are a critical component to make modules.
Hyundai has been in talks with the Hungarian government to build a plant to make solar-related components near Budapest, though the Hyundai representatives declined to unveil further information.
Meanwhile, it was recently named as the preferred negotiator for a $1 billion, 240 megawatt solar plant project in the United States.
The company plans to sell 30,000 kilowatts worth of solar panels, or 10 percent of its production capacity in Japan.