Photovoltaic industry hits winter with huge impact

The “cold wind” in the photovoltaic industry has caused many domestic photovoltaic companies to stop, and many small and medium-sized photovoltaic companies have shut down production. The LDK Solar High-Tech Co., Ltd. (hereinafter referred to as LDK), which is listed in the United States, has also been hit hard. Since almost 90% of China's photovoltaic products are sold overseas, this year's global photovoltaic product prices have fallen fiercely. After successive encounters with European debt and US companies' anti-dumping and anti-subsidy “double reverse” lawsuits, the sales situation of Chinese PV companies abroad has become more difficult.

However, this “cold wind” did not stop the LDK’s expansion. According to report, on November 1st, LDK Solar invested an area of ​​more than 2,700 mu in the construction of an optoelectronic project in Hohhot, Inner Mongolia. It is expected to be completed and put into operation in 2013 and is expected to achieve annual sales of 12 billion yuan.

Zhou Lang, dean of the School of Solar Photovoltaics at Nanchang University, expressed surprise at this investment. He said that LDK Solar has been expanding all the time, but now the global PV capacity is in surplus. This move can only prove that LDK has certain confidence in the future.

Nanchang photovoltaic exports are almost halved. "Nanchang Photovoltaic is in high-tech, and high-tech PV is in Seville." This is the portrayal of LDK's position in the photovoltaic industry in Nanchang.

In 2009, Nanchang respectively introduced LDK Nanchang and LDK Solar Energy Technology Co., Ltd. (hereinafter referred to as SeVest), both companies are located in Nanchang Hi-tech Development Zone (hereinafter referred to as Nanchang Hi-tech Zone). In the same year, Seviv Best completed the trial production of the world's largest thin film solar cell project. The company is expected to achieve annual sales of 2 billion U.S. dollars.

Nanchang City has also taken the initiative to create a grand plan to build a 100 billion photovoltaic industry. In the same year, Nanchang City formulated the "Outline of the Photovoltaic Industry Development in Nanchang City." The plan shows that Nanchang will use the efforts of 3 to 5 years to transform the city's photovoltaic industry into a 100 billion industry, making Nanchang a world capital.

However, less than two years, Nanchang photovoltaic industry suffered a "winter." Li Weiqiang, Director of the General Affairs Department of the Nanchang City Industry and Information Technology Committee, told reporters that in the first three quarters of this year, due to the impact of falling prices in Europe and the United States, Nanchang PV exports were almost halved.

A person in charge of the Economic Development Bureau of Nanchang Hi-tech Development Zone, who declined to be named, said: “The impact of Sai Wei is affected by the photovoltaic industry in Nanchang. In fact, one Saiwei (referred to as Saibai Best Germany) has stopped production for six months.”

Liu Jie, head of the Investment Promotion Division of the Investment Promotion Bureau of Nanchang High-tech Zone, stated that SeVide did not completely stop production and still maintained a production line.

LDK Nanchang company's situation is not optimistic. Since LDK entered Nanchang in 2009, it started the first phase of the project and can produce 1GW of crystalline silicon battery components. So far, the second phase of the project has not been started. When the scale of 4GW~6GW can be realized, it is still a Unknown number.

In addition, the number of employees of LDK Nanchang Company also showed a downward trend. The above-mentioned person in charge of the Economic Development Bureau of Nanchang High-tech Zone stated that layoffs are also a way to reduce costs, but the workload of other employees will obviously increase.

Vice President of the Energy Development Institute of the National Development and Reform Commission and Li Junfeng, Vice Director of the China Renewable Energy Association, believe that the US PV companies’ “anti-dumping and countervailing” anti-subsidy measures against Chinese PV companies are aimed at Grab the market and want to squeeze Chinese PV companies out of the US market.

Li Junfeng said that once the U.S. "double reverse" lawsuit is successful, the EU will surely follow suit. The United States market is not scared enough to lose, but China’s photovoltaic products’ exports to the EU reach 70%, which is the most terrible.

Obviously, LDK is also aware of this. Yesterday, the reporter called Yao Feng, director of public relations of LDK LDK. He claimed to have been sent to the sales department to supervise the sales work. For the reporter's question, Yao Sanhe kept silent.

PV companies in the “winter” are all reducing their production capacity to reduce their production capacity for self-insurance, but LDK has been in an upward trend. On November 1st, LDK Solar's investment in the 10 billion yuan photovoltaic project in Hohhot, Inner Mongolia, officially began its foundation. After the project is completed, it will become the world's largest single-scale high-purity silicon material production base.

The first phase of the project started with a capacity of 30,000 tons, covers an area of ​​more than 2,700 acres, and the construction period is approximately 24 months. It is expected to be completed and put into operation in 2013. By then, the project is expected to increase annual sales income by 12 billion yuan, profits and taxes by about 3 billion yuan, and it can directly create more than 5,000 jobs.

According to informed sources, the LDK investment amounted to 10 billion yuan. In order to attract investment from Levi, the local government in Inner Mongolia may use the investment of 2 billion yuan to allocate 100 million tons of coal resources.

LDK's 2011 semi-annual report showed that in the first half of 2011, the company’s net loss in the second quarter was 87.7 million US dollars, the company’s total assets were US$7.0566 billion, total liabilities were US$5.519 billion, and the debt ratio was as high as 78%.

Analysts believe that LDK LDK suffered losses in the first half of the year and that the debt was high. This time, investment in Inner Mongolia should be the same as previous Suntech and Suntech, and they want to join the competition for coal resources in Inner Mongolia.

For LDK’s investment in Inner Mongolia, Zhou Lang, dean of the School of Solar Photovoltaics at Nanchang University, said that he was inconvenienced for the specific event.