China Manufacturers to Prosper in Solar Shakeout, Moody’s Says
By Dinakar Sethuraman - Jun 1, 2011
Solar-energy equipment makers are being hurt by falling profit margins and excess factory capacity that will “crowd out” marginal players in favor of large, low- cost Chinese companies, Moody’s Investors Service said.
“Despite the sector’s favorable long-term outlook, the pullback of government incentives in Europe, by far the world’s largest market, will cut demand and exacerbate global overcapacity,” Chris Park, a Hong Kong-based analyst, said today in a report. New factories, particularly in China, are bringing down product prices and margins, he said.
While Park didn’t name companies that may prosper more than others, he listed Jiangsu, China-based Suntech Power Holdings Co. as the world’s largest solar-panel producer and GCL-Poly Energy Holdings Ltd. (3800) of Hong Kong was ranked No. 1 among solar- wafer manufacturers.
bloomberg.com
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