Many China-based solar firms facing financial troubles
As many China-based makers of polysilicon,solar wafers and cells have faced financial difficulties,a financial crisis may lead to some of them following the case of LDK Solar,according to industry sources in Taiwan.
Some China-based solar firms have been suffering financial problems due the significant price falls of solar products.Some reportedly are facing problems paying back debts to banks.
China's solar industry has been hit by several storms such as the anti-dumping and anti-subsidy duties from the US government.India and Europe,said industry sources,are likely to start similar investigations against China-based solar firms.The protectionism by these markets will increase the pressure on China's solar industry,especially since prices of solar products have not been showing any signs of a rebound.
Industry sources added that if one more large-size vertically integrated solar firm in China reports financial problems,the government is likely to adjust the entire supply chain.
Currently,most solar firms are operating with losses.In addition,during boom times,China-based solar firms invested heavily into production and capacity.The return on these investments will take more time,said industry sources.
The China government is likely to help large-size solar firms,especially the ones that are listed on international stock markets,indicated industry sources.
