UPDATE 1-Siemens to use Suntech panels in solar projects

* Siemens building over 80 MW of solar projects in Europe

* Chinese panel makers making inroads into European market

* Partnership could extend beyond Europe

LOS ANGELES, Jan 27 (Reuters) - German engineering conglomerate Siemens AG (SIEGn.DE) will use solar panels made by China's Suntech Power Holdings Ltd (STP.N) in several European solar power projects, the companies said on Thursday.

Although Germany is home to several of the world's top solar panel producers, Chinese players have been making inroads into the German and other European markets due to the low cost of their panels. Germany is the world's top producer of solar power thanks to a generous government incentive program for the renewable energy source.

Siemens is building solar power plants with a combined capacity of over 80 megawatts in six European countries, the company said.

Its partnership with Suntech could eventually extend beyond Europe.

"Siemens' global presence facilitates joint projects in Europe as well as in other parts of the world," Jerry Stokes, president of Suntech Europe, said in the statement.

Shares of Suntech Power were up 2 cents at $8.65 in early afternoon trading on the New York Stock Exchange. (Reporting by Nichola Groom; Editing by Tim Dobbyn)