The World's #1 Renewable Energy Network for News, Information, and Companies.

Chinese Solar Manufacturer Considering US Cell Factory Amid Trade Disputes

Chinese Solar Manufacturer Considering US Cell Factory Amid Trade Disputes

JA Solar Holdings Co., the world’s third-biggest solar-cell maker, is considering building a factory in the U.S. or another country as Chinese producers seek to bypass trade sanctions.

“The U.S. is the main place mulled, while its costs will be very high,” President Xie Jian said today in an interview in Shanghai. Other candidates “should have local demand and their markets should be large enough.”

JA Solar started construction of a South African plant that can produce 150 megawatts of solar panels annually as a first step toward global manufacturing, Xie said. Construction is expected to be completed this year.

Chinese solar-panel makers including ReneSola Ltd. and China Sunergy Co. are looking to manufacture abroad as trade disputes threaten exports. The U.S. in 2012 imposed anti-dumping duties of as much as 250 percent on solar cells from China and anti-subsidy penalties of about 15 percent.

“Overseas factories can help not only bypass trade sanctions but also explore markets by creating local jobs to improve branding,” Wang Xiaoting, a Hong Kong-based analyst from Bloomberg New Energy Finance, said today by phone. The savings on shipping goods from China may make the products cheaper, she said.

Chinese Demand

Xie forecasts panel prices this year to drop below the current 60 cents a watt as “Chinese demand may not be as positive as expected.” China capped new capacity eligible for subsidies this year at 14 gigawatts.

The Asian nation may install about 10 gigawatts of solar panels this year, short of the government cap while still the most in the world, Xie said. Falling prices will add to pressure on gross margins, which may stay at 10 to 15 percent in 2014, Xie said. JA Solar’s margin in the fourth quarter was about 15.5 percent, according to data compiled by Bloomberg.

Markets in Central and South America and the U.K. will expand, Xie said.

Copyright 2014 Bloomberg

Lead image: Moving box via Shutterstock

RELATED ARTICLES

Wind turbines

Why It's Time To Get Real About Energy Security

Hannah Smith, Contributor Energy is Europe’s quiet crisis. While the clamour of failing economies, desperate migrants and political clashes grabs the headlines, energy policy is rarely front-page news, but it should be — the statistics are shocking.

Largest Solar Farm in Virginia Just Commissioned by Amazon Web Services

Renewable Energy World Editors Last year Amazon Web Services (AWS) announced a goal of achieving 100 percent renewable energy usage for its global infrastructure and an announcement today puts it further on the path to reaching that goal. AWS announced ...

A Closer Look at Fossil and Renewable Energy Subsidies

Susan Kraemer, Contrubutor A new study by the International Monetary Fund puts the total cost of fossil fuel subsidies at approximately $10 million a minute globally, when health costs and environmental degradation are included, never mind the effec...

How to Win Planning Permission for Renewable Energy Projects (and Influence People)

Tildy Bayar, Contributor At Tuesday afternoon’s POWER-GEN Europe and Renewable Energy World Europe conference session in Amsterdam, Paul Davison of PR firm Proteus discussed how to best communicate with the public regarding renewable ene...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

2015 Solar Power International

Stop by and visit Canadian Solar at the 2015 SPI show!

2015 Intersolar-North America

Intersolar is North America's premier solar show, and it is taking place...

PV-201: Introduction to PV Design & Installation

PV 201 Introduction to PV Design & Installation is simply the best i...

COMPANY BLOGS

DIY: Don’t Install Yourself

You finally made the choice to go solar. Seems like it might be pretty e...

Capturing Your Prospects' Attention In Three Sentences

You have about 15 seconds to capture your prospects’ attention, wh...

Five Reasons to Go Solar Now

Solar’s popularity has skyrocketed recently, thanks to a price dro...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS