* To use OEM partners to ship 500 MW panels to US in 2015
* OEM capacity expected to reach 1.2 GW by end of 2014
* Q2 profit $0.01/ADS vs loss of $.24 year earlier
* Q2 revenue $387.1 mln vs $377.4 year earlier
(Adds executive, analyst comments, updates shares)
By Swetha Gopinath
Aug 12 Chinese solar panel maker ReneSola Ltd
said it would use contract manufacturers across the
globe to continue selling panels in the United States, which has
imposed anti-dumping duties on solar products made in China and
The United States extended tariffs to Taiwan last month
after Chinese companies tried to sidestep the duties by moving
the production of cells, which go into their panels, to Taiwan.
ReneSola said on Tuesday that it would use partnerships with
original equipment manufacturers (OEM) to supply as much as 500
megawatts (MW) of solar panels to the United States next year.
The company's U.S.-listed shares fell about 4 percent to
$2.73 in early trading.
"There is no escaping the fact that making the supply chain
more complicated and geographically spread out will raise
production costs, but it's almost certainly better than paying
tariffs that average 30 percent," Raymond James analyst Pavel
Other Chinese solar companies may follow in ReneSola's
footsteps, analysts said, even if that means higher costs for an
industry which returned to profitability only in 2013 after
years of margin erosion due to weak panel prices.
ReneSola plans to scale up its OEM partnership capacity to
1.2 gigawatt (GW) by the end of 2014 and 1.5 GW by mid-2015. The
company, which has 1.1 GW of solar panel capacity spread across
11 factories in seven countries, said it planned to expand OEM
partnerships in India, South Korea, Turkey and parts of Europe.
ReneSola said it would continue to use cells made in Taiwan
in products shipped to Europe, where tariffs are imposed only on
solar products made in China.
The company's "global-centric business model" would help the
company report strong results over the rest of the year, Chief
Executive Xianshou Li said in a statement.
ReneSola forecast third-quarter panel shipments of 530-550
MW, higher than the 498.7 MW it shipped in the second quarter.
The company also forecast gross margin of 15-17 percent for
the quarter. Margins almost doubled to 14.7 percent in the
quarter ended June 30 as in-house polysilicon production helped
ReneSola lower costs.
Cost of revenue fell about 5 percent to $330.2 million in
the quarter, while revenue rose 2.6 percent to $387.1 million.
Net income attributable to ReneSola shareholders was
$757,000, or 1 cent per American depositary share (ADS), in the
second quarter, compared with a loss of $21.1 million, or 24
cents per ADS, a year earlier.
(Additional reporting by Anannya Pramanick in Bangalore;
Editing by Don Sebastian)