There’s a flurry of news coming from the embattled solar sector, led by a sharp cutback by Suntech (NYSE: STP) at its main US plant that looks suspiciously like it is being ordered by Beijing part of a government rescue plan for the struggling company. Meantime, JA Solar (Nasdaq: JASO) and LDK (NYSE: LDK) are struggling just to stay listed as their market values quickly evaporate. And in a rare but fleeting piece of good news, Yingli (NYSE: YGE), Trina (NYSE: TSL) and others are getting a temporary boost as they reclaim money they previously set aside but will no longer need to use as provisions in the US anti-dumping investigation against them.
Tag Archives: Trina
US Finalizes China Solar Tariffs 中国输美光伏产品遭倾销终裁
President Obama’s election victory has dominated US headlines over the last 2 days, but Washington showed it was still hard at work with news that the US trade watchdog has finalized punitive anti-dumping tariffs against Chinese solar panel makers. In a way, this kind of quiet ending seems appropriate for a drawn-out process that began more than a year ago with a Congressional probe into a bankrupt US solar firm. With this trade issue now resolved, China, which produces more than half of the world’s solar panels, can now focus on simply saving an industry that is bleeding cash due to a huge oversupply glut.
Solyndra Lawsuit: War of the Solar Dead Solyndra发难 光伏业者拼个你死我活
The fight for survival among the world’s embattled solar panel makers is starting to look more like a battle of the dead, with word that bankrupt US player Solyndra is suing 3 of its biggest Chinese rivals over allegations of running an illegal cartel. (English article) Some of you might be saying: “Wait a minute, doesn’t Solyndra have better things to do than to be filing lawsuits against rivals who are also flirting with bankruptcy?” If that’s the question, then the answer appears to be “no”. Perhaps the failed Solyndra is still seeking some final respect, and also perhaps some money through a quick settlement of this lawsuit to repay a long list of creditors that includes the US government.
China Gets Serious on Solar Energy 中国政府开始拯救光伏行业
After talking for much of the past year about plans to develop its solar power industry, Beijing may finally be starting to transform its words into action based on the latest signals coming from mid-sized panel maker JA Solar (Nasdaq: JASO) and an unusual move by leading US manufacturer First Solar (Nasdaq: FSLR). These 2 developments are interesting from a number of angles, as they could provide a welcome lifeline to the struggling global solar panel sector and also help to diffuse trade tensions with the west, which accuses China of unfairly subsidizing its industry. But before those tensions can really ease, Beijing will have to show it won’t favor its own solar panel makers in bidding for new China-based projects at the expense of western rivals. It will also have to take more concrete steps to wean its sector from the kinds of unfair subsidies behind the western complaints, including policies like low interest loans and export rebates.
Solar Companies “Right-Size” 太阳能企业“精简规模”
Traditional consolidation in industries suffering from overcapacity typically sees stronger companies merge and weaker ones close, resulting in a healthier, more sustainable sector where everyone is profitable. But such conventional “right sizing” is less common in China, where struggling companies in strategic industries are often kept alive through financial and other support from local governments that are highly reluctant to let those ventures simply fail or be purchased by outsiders. Such artificial support may save jobs, but it does nothing to solve the overcapacity problem that created the need for consolidation in the first place. That’s exactly the dilemma facing China’s struggling solar sector, which is now posting huge losses even though we’ve yet to see players close or merge despite a flurry of such activity in the West. In the absence of proper consolidation, Chinese companies appear to be taking the next-best logical step by shuttering idle capacity and implementing massive layoffs in a bid to stem their losses, according to one report. (English article)
News Digest: September 13, 2012 报摘： 2012年9月13日
The following press releases and media reports about Chinese companies were carried on September 13. To view a full article or story, click on the link next to the headline.
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- Alibaba to Announce Completion of $8 Bln in New Fund Raising Next Week – HK Media (Chinese article)
- Trina Solar (NYSE: TSL) Streamlines its Operations (PRNewswire)
- 4 Regional Managers Leave LaShou – Source (Chinese article)
- Samsung (Seoul: 005930 Breaks Ground for Memory Manufacturing Complex in China (Businesswire)
- China’s 3SBio (Nasdaq: SSRX) Gets Buyout Offer From CEO (English article)
More Solar Outrage Over EU Probe 欧盟光伏倾销调查触发众怒
The headlines are filled this morning with chatter on the latest news that the European Union is launching an anti-dumping probe into Chinese solar panel makers, following a similar investigation by the US that is likely to result in punitive tariffs by the end of this year. In addition to news of the probe itself, most of the major Chinese panel makers have issued their own statements protesting the move, and Beijing has also expressed regret over the decision. Rather than always turning to these predictable displays of outrage and disappointment each time they receive a setback in this year-long dispute, the Chinese players might consider trying a more conciliatory approach if they really want to avoid a trade war over an industry that everyone agrees will be critical to the development of long-term sustainable energy sources.
Beijing Funds Solar Consolidation 中国政府或继续向光伏行业提供资金支持
A new announcement from solar panel maker Canadian Solar (Nasdaq: CSIQ) indicates that Beijing may be preparing to help fund a much-needed consolidation in the oversupplied sector. The news should be welcome by money-losing Chinese solar companies in general, as it indicates that Beijing will continue to provide them with funds to continue their operations as private sector options evaporate. But the move will inevitably raise new complaints from foreign rivals, who will say this funding is exactly the kind of unfair state support that has led to dumping investigations in both the US and European Union.
Solar Trade Wars: Showdown Coming? 中西方太阳能贸易战离摊牌已不远？
A new flurry of noise indicates a showdown may be imminent in the ongoing solar trade wars between Beijing and the west, reflecting the very real possibility that many of China’s top players may be on the brink of bankruptcy due to a prolonged downturn for their sector. The sudden flurry of new noises comes as yet another top manufacturer, Yingli Green Energy (NYSE: YGE), has just pre-announced second-quarter results that show the industry’s long-anticipated recovery may be weaker than expected. (company announcement)
News Digest: July 28-30, 2012 报摘： 2012年7月28-30日
The following press releases and media reports about Chinese companies were carried on July 28-30. To view a full article or story, click on the link next to the headline.
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- CNOOC (HKEx: 883) Hired US Lobbyists Prior to Nexen (Toronto: NXY) Bid (English article)
- Treasury Secretary Urged to Investigate ZTE (HKEx: 763) (English article)
- Huawei, ZTE (HKEx: 763) Among 13 Firms In MMP Infringement Complaint to ITC (Businesswire)
- US Sets Duties on Chinese, Vietnamese Wind Towers (English article)
- Trina Solar (NYSE: TSL) Statement on Request to EU to Initiate Trade Probe (PRNewswire)
- Latest calendar for Q2 earnings reports (Earnings calendar)
More Solar Winds: New Dawn Coming? 看好光伏产业东西合璧
Instead of lamenting the latest blow to the embattled solar sector that this time is coming from Europe, I’m going to take a different approach today and say that perhaps the ongoing flood of resistance from the west towards Chinese solar subsidies could actually have some positive long-term effects. The reason is this: Beijing, for all its good intentions, has shown it can throw money at developing industries to quickly establish big new manufacturers with major production capabilities. But those fast-rising powerhouses tend to be relatively bad at innovation, with many of the major new advances in the solar sector still coming from the west even as a growing number of players in the US and Europe go bankrupt.
