China’s Longi plans to set up more manufacturing plants overseas
BEIJING, Nov 11 (Reuters) – Longi Inexperienced Tech (601012.SS), the world’s most important monocrystalline silicon solar maker, is hunting to established up far more producing plants abroad, aiming to seize a more substantial market place share and stay away from hefty U.S. import tariffs.
The Xi’an-headquartered Longji Green Know-how Co has two offshore vegetation in Malaysia and Vietnam, accounting for about 1% of its overall wafer potential and 20% of its cell and module products ability.
“Not long ago we are actively learning to develop production vegetation in other areas with useful creation elements, these as India, Saudi Arabia and the U.S.,” Li Zhenguo, President of Longi Inexperienced Tech, instructed an on the web media roundtable on Thursday.
Longi has 85 GW of monocrystaline silicon wafer manufacturing capability and 50 GW of solar module generation ability.
The organization will strive to retain its world wide market place share in monocrystalline silicon wafer at 45% and to deliver the share in solar module to extra than 30%, Li stated, without having disclosing a timeframe. Longi equipped about 19% of photo voltaic modules globally in 2020.
The U.S. sector was about 15% of Longi’s full photo voltaic merchandise profits in the first 50 percent of 2021, in contrast with 11% in 2020, inspite of the persistent trade dispute amongst Beijing and Washington.
“Chinese solar products are imposed by about 150% import tariffs by the U.S. It is really just about extremely hard for China-created merchandise to be offered there,” said Li, incorporating that Longi’s Malaysia and Vietnam factories are mainly focusing on the U.S. market place.
The U.S. govt in June also banned imports from 5 Chinese solar companies accused of applying pressured labour in Xinjiang. examine extra
Li claimed going solar production ability overseas is a “suitable factor” in light-weight of China’s climate improve pledges.
“Carbon neutrality is not only a Chinese organization, but a world wide challenge… It is unfair to leave all vitality consumption pressures on China though shipping Chinese photo voltaic products throughout the world,” Li explained.
China, who has vowed to bring its carbon emissions to a peak by 2030 and reach carbon neutrality by 2060, accounts for practically 80% of solar wafer and module capability in the earth.
Reporting by Muyu Xu and Shivani Singh. Modifying by Gerry Doyle
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