Trina Solar Cancels $1B Silicon Plant

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.