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HONG KONG (Reuters) - Trina Solar Ltd, the world's No.2 solar panel maker by market value, aims to take a 10 percent or greater share of the global market as it beefs up production with capital spending of up to $400 million next year.
The Changzhou-based Chinese company expects to increase its global market share from about 8 percent now as it eyes new markets and focuses on growth in the United States, where it expects to double shipments next year, Chief Financial Officer Terry Wang told reporters at a Reuters China Investment Summit.
"We expect gross profit to grow tremendously and net profit growing even faster in 2011," said Wang.
Demand for photovoltaic solar modules has surged this year as customers bring forward orders ahead of subsidy cuts in Germany, by far the world's biggest solar market, and other European states.
But as key European markets begin slashing subsidies next year, Trina Solar said it is well prepared to withstand a weak market environment with plans to reduce its exposure to Europe and shift some of the business in the U.S.
"Growth in solar markets will be fastest outside Europe, with demand likely growing in the U.S. Australia, China and Japan," said Wang.
Trina expects Europe to account for about 60 percent of its sales in 2011 from about 75 percent now, while aiming to double shipments to the U.S. from about 130 megawatts this year.
Back home, Trina's shipments could nearly double from roughly 30 MW this year, he said.
Other new markets Trina is eyeing are the United Kingdom and India, where Wang said Trina is in talks for the supply of panels to new projects. He did not give details.
Trina Solar earlier indicated a shipment guidance of 1.5 gigawatts (GW) for 2011 but could be on track to overshoot that target.
Wang declined to give a forecast for shipments, but said the company could sell more than it produces next year to meet robust demand, and may outsource some production.
He said production was expected to grow to about 1.7 gigawatts (GW) in 2011 from about 1.1 GW.
Global solar panel shipments were expected to reach between 16 and 20 GW next year from 14 GW this year, industry analysts said.
Additional reporting by Farah Master and Alison Leung; Editing by Ken Wills