NEW YORK (AP) -- Trina Solar Ltd. canceled plans to build a $1 billion polysilicon plant after the market for the raw material used in solar cells loosened, the China-based solar company said Monday.
Trina, which makes silicon ingots, solar cells and modules, said the cancellation also dissolves a long-term supply contract it was close to signing with GT Solar Inc.
There has been a scarcity of polysilicon available for the burgeoning global solar cell market, but Trina said recent developments have been ''favorable'' for long-term supply of the raw material.
''As a result of recent favorable changes in the polysilicon supply environment, Trina Solar now believes it has greater access to polysilicon feedstock to support its growth objectives,'' the company said in a statement.
The company had planned to generate 10,000 tons of the material a year at the plant.
Trina shares rose $1.25, or 3.2 percent, to $39.20 in premarket trading after closing Friday at $38.