China’s government is taking action to weed out weaker players in the nation’s polysilicon production sector to address oversupply and quality issues. The high margins offered by module manufacturing enticed several low quality players and has led to oversupply, leading the Chinese government to take aggressive action to consolidate the market.
According to the Nikkei Asian Review, three quarters of China’s solar-grade polysilicon producers face closure. Unsupported firms will not be able to get credit lines, nor will they be eligible for refunds of export tariffs; a huge blow to companies that depend on overseas business.
With total elimination of weaker companies instead of acquisition likely, the future is looking bright for quality manufacturers such as Daqo and Yingli, both supplied by Sundriven.
Daqo appears to be a golden child in Chinese polysilicon; one of only a dozen companies that would receive priority funding support from China Development Bank Corp.
And despite tough market conditions stemming from a drop in European demand, Yingli Green Energy, official sponsor of the FIFA World Cup 2014 and the world’s largest player, reported a 60% year-on-year jump in sales for the July-September quarter of 2013.
For more information on Yingli and DAQO panels, or to obtain specification sheets for these modules, contact Sundriven today.