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50 PV companies in China only: 350 have been closed down out of business

In Electronic Infomation Category: R | on February   13, 2011

M & A wave of closures

PV companies only 50

Present, China has 350 PV components businesses have closed out of business, some PV companies look to domestic market

In the just concluded 24th World University Winter Games, in Harbin Yabuli stadium lights along the main road all the solar panels provide electricity.

Recent years, solar energy technology in China has experienced rapid development process. Photovoltaic industry in particular, is the rapid development in China in recent years, emerging industries. However, because of its raw materials, markets and TDA4605-3 datasheet and even devices are heavily dependent on the international market, making it the hardest hit by the financial crisis. Investment Advisor in the Ministry of Industry of the latest data show that until now China has 350 photovoltaic industry components business failures out of business, only about 50 survivors.

Polysilicon into the largest uncertainties

Recently released 2008 annual results, showing the energy investment in Sichuan, the Sichuan Investment and TDA4605-3 price and Energy in 2008 operating income of 518.6 million yuan, an increase of 43.0%; to achieve net profit of 358.6 million yuan attributable to the parent, an increase of 487%. However, in the face of energy 08 Sichuan beautiful investment report, Li Gang, BOC International Buyer researchers say that, Sichuan investment of energy, "growth in 2009 results mainly from Tin Creek power station and TDA4605-3 suppliers and the Ertan Hydropower Station, the price of polysilicon growth for the company to become the largest non- determining factor, "said Li Gang, and even" price or a polycrystalline silicon growth for the companys Waterloo. "This is because the energy equity investment Sichuan Xinguang Silicon 38.9% contributed in 2008 for most of the profits. Xinguang Silicon net profit of 807 million yuan in 2008, Sichuan 314 million investment and enjoy the benefits of energy, accounting for 08 of the total profit of 82.4%.

Deputy General Manager Xie Hong Chuan Investment and energy after the first accept the "Securities Daily" reporters, said, "whether it is sustainable polysilicon, and now can not judge. Now from all over the world, it is still an emerging industry. As for the future can develop many years, with unpredictability. "

Minsheng Securities Research Institute researcher Wang Fenghua energy industry also believes that investment River Energy "annual reports, earnings per share of 0.56 yuan, lower than market expectations and our previous results of 0.69 dollars forecast." As the international financial crisis led to funding of foreign manufacturers tension, many companies to cancel the order, the international demand for solar modules plummeted, polysilicon prices from a peak of 400 U.S. dollars per kilogram, plunging to 100 U.S. dollars per kilogram. "Xinguang Silicon affected, 08 fourth-quarter profit fell sharply. Xinguang Silicon vote in the 3 quarter of the energy contribution to the Sichuan investment income 119,180,000 yuan, while the 4-quarter fell to 57.94 million yuan, a drop of 48.6 %."

Turn a buyers market a sellers market in the polysilicon process, the Sichuan Investment and energy is not the only "victims." The worlds largest solar cell manufacturer Suntech recently released report expected in the fourth quarter of 2008, Suntechs total capacity in 2009 will be about 1,000 megawatts. However, the end of 2008 has reached its production capacity to 1,000 megawatts.

2009 years or since the end of 2005, Suntech will be listed on the NYSE has not expanded since the first year of production.

Financial crisis has highlighted the overcapacity

"The current global financial turmoil on the domestic impact of photovoltaic business is the primary exchange rate volatility. Since the end of the market most of the PV companies in Europe, sales in euros. With the sharp depreciation of the euro, reflected in domestic PV a loss to the actual earnings. Assuming 15% depreciation of the euro, it means that the hands of PV companies a 15% depreciation of the euro. "Topsolar Green Energy Co., Ltd. Shanghai General Manager Zhu Yuanhao said.

Not only that, the greater the crisis has reduced demand from overseas, and this hidden fact in the photovoltaic industry as early as crazy the past few years the process of capacity expansion had Yufu.

BOCI study reported that the polycrystalline silicon solar cells once in short supply, spot prices have skyrocketed, leading to a large number of new companies involved. But with the new polysilicon production capacity to gradually release the polycrystalline silicon solar cells have begun to fall into excess supply. Displaybank released

Korea predicted that the supply of polysilicon in 2009 will reach about 7.9GW (about 62,000 tons), will exceed the demand for the same year about 7.8GW; supply in 2010 will reach about 15.0GW (about 1.8 billion tons), will greatly exceed the demand of about 11GW, excess supply situation will deteriorate further.

"European banks implicated by the financial crisis, credit crunch, leading to the terminal market investment shrink. The scale of investment in order to reduce the shrinkage means that changes in the industry will eventually transfer to the domestic photovoltaic business." Zhu Yuanhao said. Foreign demand has emerged in some markets saturated, it is more to the domestic photovoltaic industry has cast a shadow, the problem of excess production capacity is more prominent.

The U.S. electronics industry advisory body with the name of a recent iSuppli report is expected in 2009, the global solar market is only 12.9 billion, 15.9 billion more than last years decline of about 19.1%.

Solar analyst in the agency view, just entering the industry chain in Mainland China and Taiwan enterprises, will be this wave of severe economic downturn hit manufacturers. This is because these manufacturers to use the vertical division of labor, spending too much money invested in excess of the silicon wafer supply, the battery market, the cost of layers in the case of booster, the degree will be more severe hit, there will be losses and net capital flow and other issues. As for some control of silicon wafers, cells, modules and other integrated production capacity of manufacturers in this wave of battery modules and polysilicon prices have fallen in the process, due to the cost of regulation and control of the more influential, the degree of injury will be less.

Closures or mergers and acquisitions wave? Zhengrong Shi, Suntech Chairman

had in a media interview, said it is estimated that by 2010 the domestic photovoltaic industry will have a larger reshuffle process.

Recently, the market research firm LuxResearch also noted in a report, the global solar photovoltaic industry in the transition may occur within the next two years, long-term accumulation of the bubble will burst. Reported in 2009, the global PV industry oversupply will lead to its price continued to decline, some companies may pull out because they can not afford.

Although Chinas solar cell production highest in the world, but 98% of photovoltaic products sold abroad, an obvious example is the current domestic production of high purity polysilicon up to 4110 tons, but the domestic market but no more than three percent.

This, LDK, president of Tong Hing snow that, for 98% of the market are the Chinese PV companies in foreign countries for any fluctuations in foreign markets will set off huge waves in the country. Moreover, the gloomy economic environment has blocked the PV companies to foreign financing sources, funds and markets once the door was closed at the same time, a large number of domestic solar companies may shock and even death.

Fact, as early as two years ago, the German Solar Industry Association had warned that the global solar industry after several years of prosperity, the next two or three years, will appear a new wave of mergers and acquisitions wave of the future merger of solar energy companies the main driving force, is the company hopes to increase production capacity through the acquisition, by scale price war in the solar cell to win.

However, the present situation, this matter of life and death, "M & A wave," or because "big companies can hardly protect themselves" and turned into a "collapse of the wave."

Insiders pointed out that the problem is that inventory is too high solar silicon wafer manufacturer in the hands, it is difficult to digest.

Silicon wafer manufacturers to turn up even if the requirements of domestic customers to purchase the contract, but the quality of different gravity, leading to customer returns and refused to purchase significant increase in the standoff situation, even if the manufacturers are willing to cut prices recently, but the price, even after less than the spot market price competition, coupled with concerns for the quality of silicon wafers, marketing bottlenecks, thereby allowing the manufacturers to be a huge burden on overwhelmed capacity, forced implementation of the suspension, and now is clay Buddha manufacturers the river, go to M & A small plant, it may be impossible.

Recently, Shi said in an interview when he admitted, Suntech in 2008 September and October, "did buy some higher-priced silicon."

It was explained that in September 2008, state of silicon is still in short supply, Suntech in preparation for the fourth quarter, production of raw materials, the U.S. dollar to 350-400 kg of price plans to buy a share in the fourth quarter the demand for production capacity of about three one of the polysilicon. And in October 2008, the silicon prices began to slump to 11 month fell to $ 200 kilograms, a drop of 50%.

Shi said that as the global financial and economic crisis intensifies, the entire PV industry in October 2008 a reversal of supply and demand, continuing a four-year sellers market to buyers market. Suntech under the new market conditions, in the fourth quarter of 2008, decided to suspend the original capacity expansion plan.

The domestic market as hoped

However, in a whirlpool in the photovoltaic industry is a major positive is February 18 the State Council approved in principle to adjust the electronic information industry revitalization plan made it clear that the introduction of supportive policies to encourage solar power, start the domestic light volt power market and the development application and demonstration of photovoltaic power generation.

This good, the domestic photovoltaic companies have started operations. Recently there have been news, several major domestic solar companies have already stepped up "and network" process, as Chinas largest solar power project in Gansu Dunhuang 10 MW grid-connected photovoltaic power concession projects, has entered the sprint period. In addition, Gansu, Jiangsu, Yunnan and other provinces also have a number of large-scale grid-connected photovoltaic power generation projects submitted to the National Development and Reform Commission.

In addition, the About Group 1,800 tons of polysilicon expansion project is under construction, 6,000 tons of projects about to start the second phase; Emei Semiconductor current production capacity of only 700 tons, but now start building three production lines of 1,500 tons; the LDK, polysilicon project size is larger - the end of 2010, which will achieve more than 16,000 tons of polysilicon production capacity.

Until 2007, installed capacity of photovoltaic power generation in China is less than 1% share of the world, and the largest producer of photovoltaic status of the first far cry, these are detached from the PV industry and market specific performance, and this times the domestic market to start, or to boost the rapid development of photovoltaic industry.

LDK, Peng Xiaofeng, chairman of the view that the construction of any industry has repeated the phenomenon of solar energy is still the most expensive, so cost control is the most important. "Our silicon material project is completed, the cost per kilogram of polysilicon will be around 20 dollars, you can greatly promote the photovoltaic industry households. If the cost of photovoltaic power generation can compete with conventional energy sources, even more than the wind low, then large domestic market will start. "

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