June 27 (Renewables Now) - Taiwanese solar cell maker Motech Industries Inc (TPO:6244) said on Tuesday it is adjusting its production capacity as a reaction to "rapid market changes" following China's recently announced solar policy tightening.
In a stock exchange statement, the company said it plans to transfer its wafer production line workers to cell line production, adding it will provide training and development programmes to the affected employees.
Taipei Times reported that about 160 workers will be moved to cell production. The company was cited as explaining that the new Chinese policy will reduce demand at a moment when the sector is already suffering from oversupply.
Market analysts already cut demand forecasts in the wake of the Chinese announcement. EnergyTrend projected that China's photovoltaic (PV) demand will fall 40% year-on-year in 2018 to 31.6 GW as a result of the policy changes, which set a cap of 10 GW for distributed generation projects in 2018 and suspended the utility-scale solar quota for the year. The new policy is expected to reduce global PV module prices. IHS Markit cut its forecast for 2018 installations in China to 38 GW from 53 GW and for global installations to 105 GW from 113 GW.