INTERVIEW-Chinese solar gear maker eyes $250mln Nasdaq IPO

HONG KONG Jan 22 (Reuters) - Chinese solar equipment maker Qiangsheng Photovoltaic Technology Co Ltd plans to raise about $250 million in a Nasdaq IPO this year to fund rapid expansion, the latest in a string of debuts there by Chinese renewable energy players.

The fledgling firm, which makes cells and panels using emerging thin-film technology, aims to boost capacity to 500 megawatts by 2010, even though its first production line will come onstream only this month with a capacity of 25 megawatts, Chairman Sha Xiaolin told Reuters in a telephone interview.

Qiangsheng, based in Nantong city in the country's eastern province of Jiangsu, will be trying to tap capital markets at a time of global turmoil, as fears of a U.S. recession and subprime woes at major banks wallop bourses.

Still, the company is in talks with U.S. and European investment banks, including Lehman Brothers LEH.N, on underwriting its listing, Sha added on Tuesday.

"A listing is the only way to fulfil our expansion ambition," Sha said. "We hope to list by the end of this year, or the first quarter of 2009 at the latest."

Qiangsheng expects to chalk up $10 million in 2008 net profit, rising to $50 million in 2009, he said.

"There's much more room to make profits for thin-film cell makers, than silicon-based ones," he said.

Investors, betting that global demand for renewable energy sources will take off as governments fight pollution and seek alternatives to sky-high crude oil prices, have pushed up solar energy stocks over the past year.

Now, tight supply of silicon is crimping growth and threatening profit margins as prices for the material surge to more than $300 per pound from less than $50 three years ago.

Thin-film technology, however, does not rely heavily on silicon to turn sunlight into electricity, and hence reduces costs. (Reporting by Judy Hua; Editing by Anne Marie Roantree)