Suntech gets delisting warning from NYSE Nuying Huang,Taipei;Jackie Chang,DIGITIMES[Monday 24 September 2012]China-based vertically integrated solar firm Suntech Power Holdings has been warned by the New York Stock Exchange of the possibility of being delisted as the firm's stock has been under US$1.00/share for more than a month.Suntech has yet to issue any statement responding to the delisting warning.
Suntech is the first China-based solar firm to be publicly traded in the international stock market.The firm reportedly faced financial troubles that threatened company operations during the global financial crisis in 2009.A recent fraud scandal has also damaged Suntech's brand image and there have been rumors about the firm's mounting debts and falling capacity utilization rates.
The continuous price fall has been weakening the market's confidence in the solar industry.The price of solar cells has fallen to US$0.38/watt from US$0.40/watt quoted earlier this month.Some firms reportedly have been quoting prices as low as US$0.35/watt.Nevertheless,demand is expected to return slowly as Germany is likely to start another incentive cut in November.
Solar firms said that although the price has yet to stop falling,the possible solar incentive cut in Germany in November is expected to create demand surge in September-October.
