Question-and-Answer Session
Operator
(Operator Instructions) The first question is from Jason Miner from Deutsche Bank.
Jason Miner - Deutsche Bank
Hi, good morning.
James F. Kirsch
Good morning Jason.
Sallie B. Bailey
Good morning.
Jason Miner - Deutsche Bank
Congratulations on a solid quarter.
James F. Kirsch
Thank you.
Sallie B. Bailey
Thank you.
Jason Miner - Deutsche Bank
Just a question on the offering – no I’m kidding, I’m kidding. On – really on electronic materials I wanted to ask, rather spend a little chatter about there’s some weakening of support for some of the subsidies specifically in Germany, and I know that we had faced some headwinds in the past when Spain had eased its subsidy for solar, so putting this together with the knowledge that margins might be a little higher on the Europe solar materials, Jim could you just address whether you can (ph) see there any headwinds to the strong margins as we go forward both on the risks politically and then just on the shifting mix toward Asia?
James F. Kirsch
Yeah, I think the – you will identify appropriately a risk in the solar industry which is politics and there is chatter in the German parliament about some care of easing in the – or subsidy easing as we get into the new year, I don’t believe that’s been (ph) despited yet and there is a lot of debate about what happens there.
Part of that debate is centered on their concern about the Chinese play because as the Chinese have become more of a world force in the cell manufacturing and moved up the quality line pretty substantially there is a fight going on between the German manufacturers and Chinese manufacturers in the European marketplace. My personal view and that of a number of consultants will use in this industry sector view the overall growth rate of megawatts as produced by solar energy over the next five years to grow at a 15 to 20% compound growth rate.
So whether that happens in Germany, China, and/or North America, which I expect will occur as we get into the 2012, 2013, 2014 timeframe is – I’m neutral on. Why am I neutral; because I’ve got manufacturing locations and distribution and sales and application of technology in all of those areas.
So we’re excited about our new facility in Suzhou. I want to remind you we have one in California, in Vista, California, which is a primary growth area for this industry as well. And as we look out over the next several years, our anticipation is though it’s an aluminum based facility for the most part today in penetrating the Chinese marketplace, will also continue to have good success with silver materials.
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