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.

Sixty-Seven Percent of China Solar Panel Manufacturers Plan to Raise Prices in 2007

HONG KONG, Feb. 8 Xinhua-PRNewswire-FirstCall

Sixty-seven percent of China's solar panel manufacturers plan to raise export prices in 2007, according to Global Sources' China Sourcing Report.

"Solar cell prices, which have increased by about US$0.30 per watt in the past two years, are expected to rise further, driving the cost of solar panels higher," said Global Sources general manager of Content Development, Michael Kleist.

"With margins at about five percent for many manufacturers, the market is expected to continue to be challenging in the months ahead."

Among surveyed solar panel manufacturers' top concerns and primary challenges for the next 12 months:

-- 56 percent cited higher raw material costs;
-- 20 percent said price competition;
-- 14 percent cited design copying/piracy; and
-- 10 percent said power and labor shortages.

Future of China's Solar Industry

The global solar energy industry is booming and China's is one of the fastest growing world-wide. However, severe global shortages of polysilicon, the key raw material in solar cell production, are inhibiting growth. China is only one production center in solar energy industry, the solar cells and solar panels are only made in China, but the key manufacturing technologies are monopolized by a small number of European, U.S. and Japanese companies, China's industry is particularly vulnerable.

What's more, the cost of solar electricity is still very high, without the subsidy from the government the market for solar electricity is very narrow.

It is reported that the global solar cell production output in 2006 is 2500 Megawatts, 1080 Megawatts higher than the installed solar cell in 2006. At present the installation is less than the production output, while the production output is less than the production capacity.

So even the Chinese manufacturers may have access to enough polycrystalline silicon, we should not be optimistic about China's solar energy industry since there is no big enough market for the huge production capacity, unless the solar electricity cost is reduced closed to the conventional electricity cost.

China's LDK Solar files with U.S. SEC for IPO

WASHINGTON, May 11 (Reuters) - China's LDK Solar Co. Ltd. filed with U.S. regulators on Friday for an initial public offering of up to $400 million in American Depositary Shares.

The company, which manufactures solar wafers used to produce solar cells, said in a filing with the U.S. Securities and Exchange Commission that Morgan Stanley, UBS Investment Bank, Piper Jaffray, CIBC World Markets, and CLSA Asia-Pacific Markets are underwriting the IPO.

LDK Solar plans to list its ADSs on the New York Stock Exchange under the symbol "LDK".

Top Solar Water Heater Manufacturers in China

China is the biggest solar water heater production country and the biggest solar water heater market in the world. It is said that there are over 3000 solar water heater manufacturers in China, and here I would like to name the top 10 solar water heater suppliers in China for your reference. They are Himin Solar Energy, Tsinghua Solar, Jiangsu Huayang Solar Energy, Aucma Solar, Tianpu, Xin Sang Pu, Sangle Solar Energy, Jiangsu Huaiyin Huihuang Solar Energy, Guangdong Macro Gas Appliance, Sijimicoe.

If you would like to know more about the solar water heater industry in China, please feel free to contact me at solar-in-china@hotmail.com