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Emerging markets have become the new strategic markets for solar firms after trade prospectsin the European Union soured due to recent anti-dumping investigations against solar productsfrom China, top executives of a leading solar firm said.
Jiang Likai, deputy general manager of Solar Energy Technology Co, a unit of the State-runChina Energy Conservation and Environmental Protection Group, said emerging markets suchas Pakistan and Chile are the new targets for Chinese
solar product makers, particularlycountries along the Belt and Road Initiative in Asia, Africa and Europe, as exports to thetraditional markets have been
hit by trade disputes.
Solar Energy Technology Co had in April decided to buy the shell of a Chongqing-basedpharmaceutical company named Chongqing Tongjunge Co Ltd in an equity swap deal, apractice commonly used by Chinese companies that want to get listed.
It will become the seventh listed company of CECEP once the asset replacement is completed.The six it currently owns cover wind power, geothermal energy,
mechanical and electricalequipment and new materials. In addition, it will become China's first State-run solar powerprovider listed in the Shanghai Stock Exchange,
according to a report by Guosen Securities Co.
Most listed solar power companies are privately owned, with limited resources in winningcontracts and expanding financing, it said.
Solar Energy Technology Co has more than 60 solar projects nationwide, with a total installedcapacity of solar energy power generation operated and under construction
totaling more than1.9 gigawatts, said Zeng Wu, assistant general manager of CECEP.
"Gross profit margin of the solar industry has rebounded to around 20 percent this year, higherthan most manufacturing industries," Jiang told journalists at the company's
manufacturing basein Zhenjiang, Jiangsu province.
The Purchasing Managers Index, a key gauge of manufacturing, slowed unexpectedly in July to atwo-year low of 47.8, the fifth consecutive month of contraction partly because of slow growth indemand.
There are more than 50 robot manipulators, automatic devices that can produced materialswithout direct contact, in the manufacturing base covering 7,800 square meters and its
annualrevenue could reach more than 1 billion yuan ($156 million), he said. The base was establishedin August 2011 with total investment of 1.1 billion yuan.
"Half of our sales are from the domestic market. We have never suffered a loss even when thesolar business was rather slack in previous years," said Jiang, adding most of their domesticclients are State-run enterprises.
CECEP is the only State-run company focusing on energy conservation and environmentalprotection. Its business includes clean energy, environmental protection and treatment andenergy-efficiency construction.
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