Shares of GT Advanced rise on Powertec deal
Shares of GT Advanced get a boost from deal to supply Powertec's expansion project
NASHUA, N.H. (AP) -- Shares of GT Advanced Technologies jumped Thursday after the company said it reached a deal to eventually sell polysilicon technology and equipment to solar products producer Powertec Energy Corp.
THE SPARK: The companies said they have a memorandum of understanding that covers the next two phases of Powertec's solar power project in Taiwan. Financial terms were not disclosed.
THE BIG PICTURE: Like other solar product makers, Nashua, N.H.-based GT has struggled amid soft demand and weak solar product prices, so upcoming orders are good news for investors. Taiwan-based Powertec makes polysilicon for solar and semiconductor industries.
Powertec said the expansion will allow it to boost production capacity and successfully compete on a global scale. Design work for the next two phases of its project has begun and Powertec expects to begin placing orders with GT in the second half of 2014.
Powertec previously bought technology and equipment from GT for the first phase of the project, which shipped in 2012. Phase one is on track for commercial operation in the first half of 2014, the companies said.
THE SHARES: GT rose 27 cents, or 9 percent, to $3.27 in afternoon trading. It reached $3.37 earlier in the session. Over the past 52 weeks, the company's shares have traded between $2.61 and $8.49. GT shares are down about 1 percent for the year so far.