UPDATE 1-Canadian Solar reaffirms outlook on plant completion

(Recasts, adds details, share movement)

Oct 2 (Reuters) - Solar cell maker Canadian Solar Inc (CSIQ.O) said it had completed the first phase of its ingot and wafer plant, and backed its revenue and gross margin outlook for 2008.

The company said the plant will add ingot and wafer capacities of 60 megawatt (MW). This is expected to go up to 150-200 MW upon completion of Phase 2 by the year end.

Canadian Solar still sees revenue of $850-$970 million for the current year and continues to project gross margins of 13 percent to 15 percent for 2008 and 2009, respectively. It also reaffirmed its shipment view of between 500-550 MW for the coming year.

The company said it had secured about 4,000 metric tons of upgraded metallurgical grade (UMG) silicon substrates for 2009, enabling it to produce between 250-300 MW of UMG e-cells and e-modules for the year.

Shares of the company were up 32 cents at $19.50 in trading before the bell Thursday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva)