ReneSola (SOL) Secures Credit, Upgrades Production Estimates

ReneSola (SOL) has announced that it has secured additional credit lines from two of China’s largest banks to the tune of RMB1.06 billion.

The company is also announcing that it has completed 90 MW of multicrystalline ingot and wafer capacity and an additional 35 MW is on schedule bringing the total annualized monocrystalline ingot and wafer production capacity to 325 MW and the multicrystalline capacity to 250 MW.  With the delivery of an additional 70 MW of multicrystalline furnaces expected during the 4th qtr, the company expects to achieve its capacity expansion target of 645 MW in annualized ingot production capacity and 585 MW in annualized wafer production capacity by the end of 2008. 

Its also raising estimates of production output for 3Q 08 to 100 – 103 MW from the previous estimates of 90 – 95MW.  It expects revenues to be in the range of 210 – 220 million for Q3 08.

“The recent increase in our ingot and wafer production capacity, together with the additional capacity scheduled for installation during the rest of the year, will ensure that we achieve our targeted capacity for 2008,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “While our capacity expansion for 2008 is fully financed and our cash position remains healthy, the additional credit lines committed to us by two leading Chinese banks demonstrate their strong recognition and confidence in ReneSola notwithstanding the current volatility of the financial markets.”k

Shares are up over 18% in premarket trading. 

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