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Solar Grows Despite the Economic Downturn

SunSi Energies Inc. (OTC-BB: SSIE), JA Solar Holdings Co., Ltd. (Nasdaq: JASO), Solarfun Power Holdings Co., Ltd. (Nasdaq: SOLF), and other solar companies could see continued growth despite the economic turmoil and a potential double-dip recession in the U.S.

The solar industry appears to be relatively protected from the global economic meltdown, according to some recent industry reports. Companies like JA Solar Co., Ltd. (Nasdaq: JASO) and Solarfun Power Holdings Co., Ltd. (Nasdaq: SOLF) recently reported earnings that beat analyst expectations, while many of the stocks in the sector appear attractively priced based on earnings and book value.

The Solar Industry Continues to Boom

The key drivers of the solar industry are high global demand for solar products and capacity constraints among solar providers. With utilities adopting standards to increase the amount of solar-generated electricity over the coming years, the U.S. could bolster its presence in the global solar market to the tune of 75% demand growth in 2011 versus 2010.

Meanwhile, international solar sales also remain strong in key markets like Germany, China, and France, as well as emerging markets like the Czech Republic. With a market no longer dominated by two or three countries, demand could significantly pick up over the coming years, particularly if an economic expansion takes over the current crisis-ridden environment.

Capitalize on the Growth with SunSi Energy

Among the up-and-coming companies that could benefit is SunSi Energies Inc. (OTC-BB: SSIE). The $89.15 million company is in the process of acquiring a trichlorosilane (TCS) producer in China with an annual capacity of 20,000 metric tons. On a normalized scale, TCS production and polysilicon manufacturing tend to achieve the highest profits along the solar value chain, followed by ingots and wafers.

The solar company entered into a letter of intent to purchase Wendeng He Xie Silicon Co. located in Weihai City, China late last month. After acquiring a 60% equity interest, the company will leverage its partnership to increase the factory’s annual production to 60,000 metric tons per year. Meanwhile, the transaction is expected to be finalized in three months with expansions in place by 2012.

Conclusion

In conclusion, SunSi Energy remains uniquely positioned to capitalize on the world’s growing solar industry as a key supplier of trichlorosilane – a raw material necessary to produce solar wafers and modules – making it a great stock for solar growth investors to consider for their portfolios.

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