US solar makers to expand in China market

Two major US solar companies announced plans to expand in China, even as the country confronts a large amount of excess capacity from local producers, Reuters reported. US solar panel giant First Solar (FSLR.NASDAQ) has signed an agreement to supply 2 megawatts of thin-film solar modules to a solar project in Xinjiang in the first quarter of next year, its first commercial project in China. US-based SunPower Corp (SPWR.NASDAQ), which is majority owned by France’s Total SA (TOT.NYSE, FP.EPA), plans to invest US$15 million to set up a US$60 million concentrating solar-power system manufacturing joint venture with local partners in China. China is set to become the world’s largest solar market in 2013, when its demand will grow to 7 gigawatts from 4-5 gigawatts this year, Maxim Group analyst Aaron Chew estimated.