EU tariffs on solar panels put Chinese manufacturers to flight

Following the imposition of punitive tariffs by the European Union on Chinese solar panel companies, many of them are retreating from the European market and turning their eyes to emerging markets.

Nevertheless, in Munich more than 200 Chinese companies have been attending Intersolar Europe, the world's largest exhibition and conference for the solar power and allied industries, making China the second-largest exhibitor after Germany, says an organizer, Markus Elsasser.

But Ma Yabin, manager of Sunda Renewable Energy GmbH, based in China, says that three years ago when the industry was at its apogee, and more than 600 Chinese companies attended the show then.

"Our German partners are unhappy with the anti-dumping result because it's difficult for them to shift to other suppliers quickly," Ma says.

This year's five-day show and conference was to end on June 21 and next year's show is due to be held in Beijing.

While big Chinese solar panel companies were in Munich for this year's event, many smaller ones failed to turn up.

Since the EU began its investigation of dumping by Chinese solar panel companies, many of the small and medium ones say they have encountered increasing difficulties doing business in Europe.

"If the EU imposes anti-dumping duties on Chinese companies, most of our export companies will not be able to sell a single product there," says Wang Donghong, publicity officer at Jingwei Electronic Material.

Her company is one of the companies absent in Munich. The company has made efforts to cut production costs and apply new and high technology to squeeze benefits from its factory since 2011, when the industry began to face big challenges from destination countries such as the United States.

Because of adequate orders in the first half of the year, the company's factory ran at full capacity, but in the second half, production is likely to run at 70 percent of capacity at best, she says.

Rudy Wang, sales and marketing director of the Chinese PV cell and module manufacturer Econess Energy Co Ltd, says that while his company did not have a booth at the Munich show, he attended in an effort to solicit orders.

Econess Energy had already suffered from the EU action, he said. However, with 11.8 percent tariffs coming in, orders had risen suddenly, he says.

"Our European customers are afraid of tariffs of 47.6 percent, so they are buying extra before the higher tariff is imposed."

The bigger Chinese companies have begun to focus on other markets including Japan, South Africa and the domestic market.

The world's largest solar panel maker, Yingli Green Energy Holding Co Ltd, has reduced its sales target in Europe from last year's 60 percent of global revenue to 40 percent this year.

Another big company, JA Solar, said it, too, will reduce its sales target in Europe and place greater emphasis on Japan.

Dany Qian, the global branding director of JinKo Solar Co Ltd of Shanghai, says Europe accounted for about 40 percent of its revenue last year, but because of the EU tariffs it has halved that for this year.

The company will now concentrate on South Africa, she says.

Organizers of Intersolar Europe say China is expected to become the largest country in terms of solar panel installation this year, surpassing the US and Germany.

Contact the writers through tuoyannan@chinadaily.com.cn

(China Daily European Weekly 06/21/2013 page8)