Taipei, March 11, 2010 (CENS)--Heraeus Holdings GmbH, the world`s second-largest supplier of silver pastes, has decided to set up an R&D center and plans to build production lines of silver pastes in 2012 in Taiwan, showing its determination to cash in on huge business valued at billions of NT dollars in Taiwan`s solar energy industry.

Heraeus, established in 1985 and engaged in applications of precious metals, has taken a successful foray into the global market for silver pastes for photovoltaic products since last year, as the firm effectively scored a 25% share of the niche segment in 2009 and is expected to challenge a 40% at the end of this year as the largest of this kind in the world. The firm now operates silver paste factories in the U.S., Europe and China, and projects its annual output to reach 100 metric tons this year.

In the meantime, Heraeus has also become part of supply chains of Taiwan`s major solar energy companies, such as Motech Industries Inc., E-ton Solar Tech Co. and Gintech Energy Corp. Therefore, industry insiders note that the firm`s move to set up an R&D center in Taiwan denotes somewhat its increasing focus on business ties with the island.

Silver paste is key material for production of solar cells, and photovoltaic products` photoelectric conversion efficiency hinges on the material`s conductivity. Generally, a solar cell company would consume about 150 kilograms of silver pastes, which sell for around US$1,000 per kilogram presently, a month for each of its 30-megawatt production lines.

Coincidentally, a couple of Taiwanese photovoltaic companies, including Motech, Gintech, Neo Solar Power Corp. and DelSolar Co., have recently intended or moved to build their first 1-gigawatt solar cell production lines. In other words, Taiwan`s total output of solar cells is expected to hit 5 gigawatts in a short time, generating enormous business potential for Heraeus in the future.

To seize the business opportunity, Andy London, Heraeus`s PV Business unit manager, indicated that his firm is going to pour around NT$60 million into building the R&D center in Taoyuan County, northern Taiwan, initially to provide timely services to its Taiwanese clients. Noteworthy is that this will be the firm`s fourth overseas R&D center, with the other three already operational in the U.S., Europe and Shanghai, China, indicating Taiwan`s increasing influence in the global supply chain of photovoltaic products.




(by Steve Chuang)