Anti-dumping Probes Prompt Chinese PV Makers to Work With Taiwanese Suppliers
Sep 24, 2012
Hit by anti-dumping probes in major markets, mainland Chinese photovoltaic (PV) manufacturers have begun seeking cooperation with Taiwan's suppliers while trimming the production at in-house facilities.
While European Union and India are probing into PV products imported from mainland China over alleged
dumping practice, the U.S. government has slapped a 25% punitive tax on the products from the Chinese mainland.
These countermeasures have put a damper to the mainland's PV-equipment production. GCL-Poly Energy Holding Ltd., which is reportedly the world's No.1 solar-product manufacturer, has announced 15 days off during the mainland's Oct. 1 National Day holidays while No. 2 player Suntech Power Holding Co., Ltd. has cut output by a quarter. Other players including Trina Solar Ltd. and LDK Solar have also cut down output.
GCL-Poly said it is working out corporate structure after swinging to loss in the second quarter. In addition to output cut, Suntech will axe 1,500 employees. The company is embroiled in an investment fraud scandal.
Many of the mainland's PV manufacturers have begun seeking partnership with Taiwan's suppliers, including Motech Industries Inc. and Solartech Energy Corp.
Motech executives pointed out that the company has seen increasing subcontracts, implying that the effects from these trade sanctions on the mainland's industry are escalating. They said the company is optimistic abut the mainland's reduction, which they stressed would help ease overcapacity.
Nevertheless, Motech executives have declined to disclose details about the contracts flying from the mainland.
Informed sources estimated Motech's contract manufacturing service has increased to account for around 30% of its total output over the past few months, up from 5-10%.
Solartech executives pointed out that some mainland Chinese manufacturers have approached their company over subcontract manufacturing deals after the sanction measures are applied.
source & copyright: CENS