Trina latest solar giant to report surging demand Trina Solar, the third-largest panel producer, is running its factories at full speed to meet surging demand, joining SunPower and JinkoSolar as the industry emerges from a global glut. Trina increased its forecast for panel shipments this year to as much as 2.4 gigawatts, matching its estimated annual production capacity, the Changzhou, China-based company said in a statement. The solar industry has been battered by excess production that drove panel prices down 61 per cent since the start of 2011. Trina is the third producer in the past month to say its factories are running at maximum as demand soars, especially in Asia. That's boosting margins, a sign that the industry is emerging from its slump, said Dan Ries, an analyst with Maxim Group in New York. "The solar industry was put into a bad, bad downturn, a horrendous margin environment," Ries said. New markets, China, Japan, are growing, more than offsetting slowing markets like Europe. If you hold capacity constant, demand continues to improve, you'll get to a healthy balance and then after that to a shortage. Gross margin at Trina was 11.6 per cent in the second quarter, up from 1.7 per cent in the prior quarter. Full capacity "Going forward, we also have to continue to utilize our capacity beyond our nameplate," the top production rate, Terry Wang, Trina's chief financial officer, said on a call with analysts. We do have some little bit of room, but sooner or later we have to think about how we can expand our capacity. Jinko reported Aug. 14 its first profit since 2011, buoyed by strong demand in Japan and China. Chief Executive Officer Chen Kangping said during a conference call that the Shangrao, China-based company expanded annual production capacity to 1.5 gigawatts from 1.2 gigawatts, which won't be enough to meet its 2013 forecast of 1.5 gigawatts to 1.7 gigawatts of panel shipments. The factories are running at about 90 per cent of capacity now. "We are almost sold out until October and mainly China is getting a big part for the third quarter," Chief Marketing Officer Arturo Herrero said on the call. Trina's American depositary receipts, each worth 50 ordinary shares, gained 15 per cent to $US7.82 at the close in New York. Asian demand The 102-member NYSE Bloomberg Global Solar Energy Index has gained 37 per cent this year as demand surges in Asia and panel prices stabilize. Japan is promoting wider use of solar power after closing nuclear facilities following the 2011 Fukushima nuclear disaster. China has said it expects to install 10 gigawatts of solar panels this year. SunPower said on July 31 that it's exploring ways to increase capacity, including expanding a joint venture with AU Optronics Corp. "As we look at the balance of this year and then deep into next year we see ourselves fully allocated," Chief Executive Officer Tom Werner said on a call with analysts. Yingli Green Energy is China's largest panel manufacturer by 2012 shipments, followed by Suntech Power, according to data compiled by Bloomberg.