THURSDAY 24 JANUARY, 2013 |
Daqo Set To Shine In China's Solar Panel Sector
For leading Chinese solar panel companies such as Daqo New Energy Corp (NYSE: DQ) ; which
has also gained the favour of China's government, the nation's solar uptake push
will assist in further strengthening their position.
According to the NPD Solarbuzz Quarterly
, the Chinese end-market was less than 10% of global PV demand just
two years ago. During the final quarter of last year, a third of all global PV panel shipments
ended up (or stayed) in China.
With China planning to more than double its installed
solar PV capacity
this year; local manufacturers that survive consolidation
efforts can look forward to prosperity.
Chinese solar panel manufacturers have been doing it tough in recent years.
Cut-throat competition, plummeting panel prices and associated wafer-thin
margins have seen weaker companies going to the wall. Even with the domestic
love for solar growing; many more will follow as there are still too many
China's government has recognised the challenges within its PV sector and is
taking steps to thin the herd. The strong will not only survive, but flourish.
China's government is smiling upon a chosen few; for example, Daqo
New Energy Corp
is one of only a dozen companies that will receive priority
funding support from China Development Bank Corp.
"This is important to the industry that only 12 selected companies can receive state support, indicating the government’s intention to speed up industry
consolidation," said Jessica
, an industry analyst at Bloomberg New Energy Finance in Beijing when the
situation came to light last year.
At the time the Bloomberg article was published, not all the beneficiary company
names were known; but Daqo New Energy Corp confirmed yesterday it made the list.
Daqo has been rapidly expanding and began making itself known in Australia when
local solar provider Energy Matters
to the Australian residential solar market last year.
The modules use Daqo's sought-after 9N polysilicon and offer excellent
performance in Australia's often harsh conditions, plus a positive power
tolerance - meaning all modules are guaranteed to achieve at least their
Daqo New Energy Corp is one of China's largest polysilicon manufacturers; with
an estimated total production capacity of 4,300 metric tons in 2011.The company
has established a 200MW solar panel manufacturing plant in Nanjing, China.
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