The EU coughs the domestic PV industry and has a fever

“The EU has a cough, and the domestic PV industry has to have a fever. This is the result of the market being subject to people.” Yesterday, Ma Xiaodong, head of the photovoltaic business unit of a large domestic PV company, told reporters.

Citing two EU officials, on May 8, local time, the European Commission agreed to impose a temporary penalty rate of 47% on imported PV products imported from China, which took effect on June 6. According to the report, a copy of the draft of the European Commission shows that the average level of temporary penalty tariffs is 47.6%.

Since the EU announced last year's "double-reverse" (counter-subsidy, anti-dumping) investigation of China's photovoltaic industry, the domestic photovoltaic industry has been in the shadow. This "temporary tariff" is even worse for China's photovoltaic industry. It is understood that some domestic PV companies have already closed down, some are planning to transfer production capacity, while others are making efforts to open up the domestic market, and strive to break through early and get rid of the current predicament.

China's PV industry is frequently investigated by “double opposition”

"The EU has repeatedly set a threshold for China's PV products, and in the end it is trade protectionism." Wang Ning, chief engineer of China Haiyang Energy Group, told reporters.

A few days ago, the Ministry of Commerce reported that the European Commission recently announced a countervailing investigation on photovoltaic glass products originating in China. According to preliminary statistics, in 2012, the products I involved in (including other glass products under the same tax code) exported about 200 million US dollars to Europe.

On September 6, last year, the European Commission announced the official launch of an anti-dumping investigation against crystalline silicon photovoltaic products originating in China. On September 25th, the European Photovoltaic Industry Alliance launched a countervailing lawsuit again. That "double-reverse" covers almost the entire industry chain, including silicon wafers, batteries and components. Two bad news were exposed one after another, which caused an "earthquake" in the domestic photovoltaic industry. After all, more than 70% of China's PV products are from the European Union, with an annual export volume of more than 20 billion euros. Once the “double-reverse” is established, it will undoubtedly hit China's PV industry.

Also in November last year, the US Department of Commerce was approved to impose anti-dumping duties and countervailing duties on Chinese PV products in the next five years. The two hairs of the EU and the United States have made Chinese PV companies more difficult.

“No way, who wants to leave both ends?” Wang Ning asked, most of China’s PV companies are concentrated in the manufacturing process. Raw materials, manufacturing equipment and markets are all abroad. “If the European and American governments are not happy, they can hold on to them at any time. throat".

Only a few giants in China are producing normally

"We have stopped production for several months, and the more we lose, the more we lose." Yesterday, Li Ju, head of a private solar cell module company in Yanjiao, told reporters that in 2010, more than 300 workers worked overtime. Since last year, basically no money has been made. At first, I started working hard to retain the workers. But the more the production losses, the more the work was stopped and the workers disbanded. Now the workshop is closed, only one relative and two dogs are watching the factory.

It is not surprising that domestic small and medium-sized PV companies have stopped production in large areas, but even domestic PV giant LDK has recently fallen into a dilemma. Although the local government repeatedly "transfused blood", LDK still ushered in losses for seven consecutive quarters and faced insolvency.
"Now only large companies such as Yingli and Artes can maintain normal production." Yesterday, industry insider Ma Xiaodong was extremely pessimistic in a telephone interview. Production equipment has a life cycle, and if there is no industry recovery in a year or two, these equipments are also facing retirement. “Now, only companies in Europe and the United States that sell PV production equipment make money.”

Li Ju dreamed of being acquired by Yingli Green Energy, a “hometown” in Hebei. The latter had the world's largest component shipments last year, replacing Suntech and becoming the new leader in domestic PV companies. Yesterday, Yingli propaganda department told reporters that Yingli is currently producing normally, and this year's PV module production is expected to increase.

"Double-reverse" forced domestic enterprises to transform

"In layman's terms, the EU does not want to let the company do even the manufacturing process, and domestic companies can only seek to break through." Hung Ho, director of the Photovoltaic Research Center of the China Energy Economic Research Institute, told reporters.

Yingli started the transformation very early. While deepening the domestic market, it is also developing emerging markets such as Japan, South Africa, South America and Southeast Asia. Yingli even adopted a mixed operation strategy to invest in real estate, aquaculture, logistics and other industries. "You can't put your eggs in one basket. Although Yingli's main business is still a PV module, other industries are also effectively sharing the risks." Yingli publicity department said.

"The industry has a future, it does not mean that the external environment is good. The government and the bank are the external environment. It can't be improved in two years." Miao Liansheng, the chairman of Yingli, who has been so lamented, recently took a sigh of relief. In late April, Yingli won the China Development Bank. Short-term loans with a total value of $165 million were used to purchase raw materials.

Artes Solar Power is considering a new tax avoidance plan. One of the programs is to export from China to Europe and from Canada. The Artes Canada plant has a capacity of 400 megawatts and is now running at full capacity. “The account we have to calculate is whether it can be exported to Europe from Canada. Is it better than the European PV modules? If we are not choosing Canada, where is the most cost-effective way to build a new plant? Of course, if the second idea is to be implemented, It’s not a day or two,” said Zhang Hanbing, director of global senior marketing at Artes.

Domestic PV industry will welcome the final reshuffle

"If Europe imposes punitive tariffs, it will have a serious blow to Chinese companies. This is not a business or an industry that can cope with it. The key moment is to rely on the government to come forward," said a staff member of the publicity department of a listed PV company.

"European levies heavy taxes and double-reverse, domestic PV companies will definitely be hit. But the more difficult it is, the more you have to see the problem." Wang Ning of China Haiyang Energy believes that the low conversion rate of components and the high cost of polysilicon extraction are two in the photovoltaic industry. Big bottleneck. Domestic enterprises simply do manufacturing, no core technology, and rely solely on labor costs, they can never solve the problem of being controlled by people. Nowadays, PV companies are constantly bottoming out, and the industry bubble has been squeezed out. Weak companies are shut down, which is also a good thing for powerful companies.

"From the perspective of the economic cycle, the domestic PV industry has not yet reached the bottom, and is facing the final industry reshuffle." Hung Hom of the China Energy Economic Research Institute told reporters that the problem of the domestic PV industry lies in the serious imbalance between supply and demand. At present, most companies only stop production, not bankrupt, and industry consolidation will continue.

Hung Ho said that since the middle of 2011, the global photovoltaic industry has begun to integrate the industry. Many companies in Europe and the United States have gone bankrupt. Last year, the dominant enterprises gradually resumed production and the market turned warmer, indicating that the market has passed a round of “survival of the fittest”. In contrast, the domestic market has a bigger bubble, so it has not yet come out of the trough.

"The levy of temporary punitive tariffs in the EU will be hit, but only in a phased manner." Hung Hom believes that China will be a photovoltaic power, and those uncompetitive enterprises will be eliminated by the market. “This is also one of the backgrounds for the country’s imminent entry into the market.”

The policy environment for the domestic PV industry is also becoming clear. Recently, the National Development and Reform Commission issued a clear document, the solar photovoltaic industry will be included in the accelerated and simplified review of bond issue support. The Ministry of Industry and Information Technology is also expected to introduce market access conditions for PV industry-wide products in the first half of the year, which is interpreted by the industry as a hard indicator to guide the healthy development of the PV industry.

"It is said that the government will strictly select a group of advantageous enterprises recently, and the subsidies for photovoltaic enterprises will gradually decrease, so that they are strong and eliminated." Industry insider Ma Xiaodong said.

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