AUO, Evonik Team Up on Green Energy Business

Taipei, Dec. 1, 2010 (CENS)--AU Optronics Corp. (AUO) yesterday announced its partnership with Evonik Industries of Germany on research and development, production planning and manufacturing of products dedicated to solar, energy-saving lighting and other green-energy markets.

Industry executives pointed out that the teamwork will help AUO penetrate Germany's solar-power market, which is currently the world's No.1, in light of Evonik's position as the No.5 electrical power generator in the European nation and its determination to increase solar-power supply.

Evonik raked in revenue of 13.1 billion euros (US$17 billion at 1 euro at US$1.3) in 2009. It is operating power plants in Brazil, India and South Africa in addition to Germany.

Germany accounts for up to 30% of global solar-energy market. European Union's plan to push up renewable energy to account for 20% of the total electrical power throughout the union by 2020 is estimated to further boost solar-energy market in Germany.

AUO is ramping up output of solar panels after diversifying into photovoltaic sector from liquid crystal display (LCD) manufacturing, in which the company is a leading maker at global level.

AUO President W.S. Cheng pointed out that for every NT$10 billion (US$333 million at US$1:NT$30) investment by the firm in the solar-energy field, the spending can bring the firm revenue of NT$60-70 billion (US$2-2.3 billion). His statement sheds light on the company's involvement in photovoltaic business.

Photovoltaic business is projected to become the company's another major revenue earner beginning in 2011 in consideration of the lucrative 25-30% of gross margin the manufacturing still promises the investors now. Early next year, solar manufacturing is projected to constitute around 10% of the company's revenue.

Around 90% held by AUO, M. Setek, a Japanese manufacturer of crystalline silicon wafers, is AUO's primary investment in the photovoltaic industry. The wafer maker plans to more than double output to 7,000 metric tons by the end of this year from current 3,000 tons.