Thursday, March 21, 2013

China solar giant Suntech falls back to Earth

The last thing you want to hear from the solar photovoltaic industry is players going into bankruptcy.

Just a year ago, China's Suntech was the world's largest solar panel producer, but has plunged to a near bankruptcy, if what's reported is true.

Top 10 solar module producers in the world. Source: Renewable 12 Global Status Report

"What (Suntech) has done is increase supply to the market so much, that they really almost can't sell anything at a profit now. It is going to be difficult for them going forward. You might end up seeing a very different company down the road."
-- Ben Cavender, China Market Research Group in Shanghai.

Falling back to earth? Source: France24
Bleak day for Solar PV industry

China’s Suntech has made a painful journey from being the world’s largest solar panel producer to flirting with bankruptcy in just a year, highlighting the woes of the industry it shaped.

Oversupply as Chinese producers flooded the market and trade disputes over alleged Chinese dumping caused a sudden and spectacular reversal of fortunes for Suntech, which has defaulted on repayments for a $541 million bond issue.

The board ousted the company’s renowned founder just days ago after 12 years in which he led it from nothing to world market domination and now to the edge of ruin, leaving it scrambling to secure new funding and hold creditors at bay.

The global solar industry has been burned by the economic slowdown in Europe and the United States, together with weak prices blamed on Chinese companies which sought to build market share by under-cutting competitors.

a) Renewables 2012 Global Status Report
b) PVinsights
c) France24 Internation News

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