Chinese PV makers to lose EU market shares if Asian competition grows - report
Aug 7, 2013 - The price undertaking deal between China and the European Union (EU) will make it hard for Chinese companies to retain their market share in Europe, especially if competition from other Asian manufacturers goes up.
News agency Xinhua earlier this week cited Liang Tian, head of public relations at Chinese photovoltaics (PV) maker Yingli Green Energy Holdings (NYSE:YGE), as saying that it would be difficult for Chinese firms to sell products in the EU if rivals from India, Malaysia and Korea increased their market penetration. Only imports from China are subject to price undertaking, so Asian peers can define their own prices in Europe.
Wang Bohua, secretary-general of the China Photovoltaic Industry Alliance, said, as cited by Xinhua, that Chinese solar manufacturers will need to improve quality, efficiency and after-sale service if they wanted to keep their pieces of the EU market.
According to Qu Xiaohua, chairman of Canadian Solar Inc (NASDAQ:CSIQ), agreeing to a minimum sales price in Europe will mean that only PV manufacturers that have established their own brands, research and development capabilities and sales channels will be able to actually grow their market position in Europe. This would not be the case with smaller firms, Xinhua said, citing Qu.
At the start of this month the European Commission (EC) gave the green light to the price undertaking proposed by Chinese solar panel exporters with effect from August 6. Under the deal, which expires in 2015, China-made solar equipment will be sold in the EU above fixed floor prices. The companies that accept such minimum prices will not be subject to any anti-dumping levies. Chinese solar exporters that do not participate in the price undertaking will face preliminary punitive tariffs of between 37.2% and 67.9%, as previously announced..