SolarWorld and local rivals such as Q Cells and Conergy have benefited from Germany's renewable energy law that guarantees above-market prices for solar power fed into electricity network for 20 years.

The law, which went into effect last year, helps SolarWorld compete in the rapidly growing $7 billion world solar market.

Asbeck said the company plans to invest more than 150 million euros ($197 million) over the next two years to boost its capacity, currently running at full steam.

He said the investments would be financed by government funds, bank loans and equity, and there was no need for a fund raising exercise.

SolarWorld shares rose 0.8 percent to 76.35 euros by 1226 GMT following the news, reversing a fall of as much as 1.7 percent earlier, while the German technology index was flat.

Since the end of 2002, SolarWorld shares have risen around 14 times, boosting its market value to around 440 million euros from 32 million.

Asbeck has already said he expects the firm's 2004 net profit to come in higher than Solarworld's own forecast of 14 million euros.

A VISION LIKE INTEL

In addition, the company plans to raise its dividend. "A doubling from 2003 is not an unrealistic estimate," he said.

The firm, about 40 percent controlled by the Asbeck family, paid a dividend of 18 euro cents per share in 2003.

"We are focusing on being the biggest wafer producer (in the world)," Asbeck said.

"In every module (solar panel) around the world, there should be a wafer from SolarWorld, like the chip from Intel in most computers."

He said the firm's board plans to recommend issuing bonus shares to shareholders, which can help improve liquidity in the only listed pure-solar-energy stock in Germany.

According to Reuters Research, the stock trades at 34 times 2005 estimated earnings, while solar-related firms such as Tokuyama in Japan and Evergreen Solar in the United States trade at 21 times and 19 times respectively.

SolarWorld, which competes globally with bigger rivals like Sharp Corp, BP Solar, Shell Solar and Kyocera, joined Germany's technology index in December.

In 2010, analysts expect the solar power market -- which has been growing at about 30 percent a year since 1990 -- to be worth around $30 billion.

Industry body UVS said there was more solar power installed in Germany last year than any other country, with installed capacity rising some 300 megawatts to 700 megawatts -- about the size of a small nuclear or coal-fired power plant.

Despite strong growth, the share of solar power in the country's energy production remained below 1 percent.