When the solar industry was experiencing a boom before 2010, many firms were attracted to enter the market and began massive investments, causing an oversupply which has seen many firms face financial trouble.
In 2011 alone, 40 firms, mainly from Europe and the US, declared bankruptcy, according to Digitimes Research.
Even OCI, a South Korea-based polysilicon supplier that has a relatively sound financial status, reported a net loss for the first time in third-quarter 2012. Most South Korea-based polysilicon suppliers that have exited the market were less well-known and had an annual capacity of less than 3,000 tons.
The Hanwha Group, a South Korea-based firm that completed the acquisition of Germany-based solar cell maker Q-Cells in November 2012, is one of the few firms that has a stable solar business and has not stopped making investments. According to analysis published by GTM Research, a US-based research institute, by 2015, there will be only eight solar firms surviving in the market and Hanwha will be one of the firms. Hanwha plans to complete a polysilicon plant and begin production in second-half 2013 to achieve vertical integration and become a large-size international solar firm.
