Nov 28 Chinese solar panel makers Yingli Green
Energy Holding Co and JA Solar Holdings Co Ltd
joined rivals in saying that they would turn to their domestic
market to drive shipment growth in the face of steep U.S. import
duties and a slump in panel prices.
Yingli expects shipments to grow rapidly in markets like
China in the fourth quarter, while JA Solar said it was making
inroads into Australia, Southeast Asia and South America.
JA Solar's third-quarter shipments to China doubled from the
preceding quarter. China contributed 28 percent to Yingli's
quarterly revenue, compared to 14 percent in the second quarter.
Rival JinkoSolar Holding Co Ltd earlier this month
said half of its 2013 revenue would come from China.
China has launched a number of incentive programs to prop
its flailing solar industry and in August hiked its 2015 target
for solar power capacity by 40 percent to about 21 gigawatts
(GW), the third increase in just over a year.
The United States earlier this month approved tariffs on
imports from most top Chinese solar equipment manufacturers,
including Yingli and JA Solar.
The European Union is looking at imposing similar duties and
has launched an investigation into alleged state subsidies for
Chinese solar panel manufacturers.
These developments in top market Europe and the United
States come at an unfortunate time for Chinese solar companies,
whose margins have nearly disappeared due to a sharp fall in
Prices have plunged 75 percent in the last four years on
weak demand from Europe and rapid capacity expansion.
BETTING ON POWER PLANTS
Yingli also said it would ship 200 megawatt (MW) of modules
to a utility scale project in Imperial County, California, being
developed by Centinela Solar Energy LLC.
Solar companies are turning to the more lucrative business
of developing large solar power plants that will be powered by
their panels, as pure panel manufacturing remains highly
Rivals Trina Solar Ltd and Canadian Solar Inc
have also said they are turning their focus to
utility-type solar projects.
JA Solar, which consolidated its American Depositary Shares
(ADS) last week to avoid delisting from the Nasdaq, said it
expects total cell and module shipments to be between 380
megawatt (MW) and 420 MW in the fourth quarter, compared with
418 MW in the third.
The company narrowed its full-year shipment outlook to
between 1.55 GW and 1.65 GW, from 1.5 GW to 1.8 GW.
The bleak shipment forecast comes days after rivals Trina
Solar and Canadian Solar cut their full-year forecast for solar
Shares of Yingli, valued at about $218 million, closed at
$1.43 on Tuesday on the New York Stock Exchange. Shares of JA
Solar, valued at about $132 million, closed at 65 cents.
Yingli shares have lost nearly two-thirds of their value
this year, while those of JA Solar have more than halved.