Chinese photovoltaic cell maker Solarfun Power Holdings Co Ltd said on Friday it would increase its production capacity this year, anticipating higher demand.

The company said it would increase its photovoltaic (PV) module production capacity to 700 megawatts (MW) from 550 MW by April and its PV cell production capacity to 480 MW from 360 MW by July.

We are expecting to see strong demand from areas with increased subsidies to solar projects such as China and the United States, Solarfun President Peter Xie said in a press release.

Demand for solar power products has rebounded after a difficult 2009, when the global credit crisis dried up available financing for new projects and panel prices plummeted.

Chinese players in particular have seized on rising demand, turning their low cost structures into sales, and several plan to boost production capacity in 2010.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Jon Loades-Carter)