Tuesday, May 15, 2007

China Solar Panel Manufacturers Reducing Costs, Targeting Exports to the EU

In order to increase profit margins, many Chinese solar panel manufacturers plan to increase capacity to gain economies of scale.

According to surveyed manufacturers:
-- 22 percent plan to increase capacity by more than 50 percent;
-- 20 percent expect increases of 20 to 50 percent;
-- 50 percent plan increases of up to 20 percent; and
-- 8 percent plan to maintain current capacity.

One bright spot for China's exporters is the EU. Due to favorable legislation, which includes financial incentives encouraging the use of renewable energy, many solar panel manufacturers are targeting exports to this market.

Among surveyed manufacturers:
-- 74 percent plan to focus on exporting to the EU;
-- 20 percent plan to target exports to the United States; and
-- 6 percent plan to focus on the Mideast/Africa and Asia.

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