Although the US Department of Commerce has not yet announced results of its anti-dumping and anti-subsidization investigation against China-based makers of solar cells and modules, first-tier China-based makers who expect unfavorable results of the investigation have already started outsourcing production to decrease as much potential punishment as possible, according to industry sources.
Some solar firms in China believe the investigation will likely cause strong impact to the solar industry. In addition, the oversupply problem has been plaguing China's solar industry since 2011. This market condition is likely to last throughout 2012 creating more obstacles for the solar firms.
Industry sources added that only first-tier solar firms have relatively well capacity utilization rates. Some have solar cell and module utilization rates above 80%. Others face much lower utilization rates. Furthermore, many solar firms in China have been looking for strategies to deal with the possible results of the US investigations by releasing OEM orders to Taiwan. But as China-based solar firms have lower production costs, the outsourcing means an increase in their production costs.
Second- and third-tier solar firms have been suffering because of lack of strong distribution channels and flow of financial capital. Large-size first-tier solar firms such as GCL-Poly and LDK have been able to extend their businesses to system developing in overseas markets.
Second- and third-tier solar firms in China suffered throughout 2011
Photo: Digitimes file photo
Article translated by Jackie Chang
