The European Commission is expected to announce its position on the anti-dumping investigation requested by solar firms in Europe on September 6,2012.Solar firms around the world have been waiting for the announcement since Europe-based solar firms filed complaints against their China-based peers.
According to industry sources,China currently has annual solar cell capacity above 40GW,but due to oversupply,only 20GW of capacity is still operating.If Europe decides to start the investigation and subsequently implements punitive duties,it is likely that there will be less than 10GW of solar cell capacity operating in China.Nevertheless,the effect of the investigation and punitive duties might help the solar market to achieve equilibrium as China-based solar firms reduce production.Taiwan-based solar cell makers may also benefit from increasing orders from China.
According to Wen-Whe Pan,president and COO of Taiwan-based solar cell maker Gintech,China-based solar firms have implemented conservative business strategies in July-August due to the possible investigation in Europe.China-based solar firms have been decreasing inventory levels to prepare for unfriendly market conditions.This has also caused the price of solar cells to drop in recent weeks.
Sam Hong,president of Neo Solar Power,another Taiwan-based solar cell firm,noted that cooperation between solar firms in Taiwan and China will increase if Europe decides to start the investigation and implement duties on China-made solar products.With Taiwan's supply chain and China's brand recognition,firms in Taiwan and China can both gain competitive advantages,said Hong.
