China Aims for More M&A in Solar Segment (JASO) (LDK) (TSL)
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China solar may see more industry consolidation as the country moves to limit excess photovoltaic (PV) capacity.
Bloomberg reported today that China's Ministry of Industry and Information Technology is planning to curb PV plant expansion. The MIIT said companies must spend more than 3 percent of annual revenue on equipment upgrades and R&D, and must also exceed RMB10 billion (about $1.6 million).
While China isn't looking to shutter any operations, it would feel more comfortable if companies looked to partner up or merge.
Most solar companies felt a pinch in 2012 as oversupply led to a 20 percent drop in prices. If China was running at full speed, the country would be able to produce 49-gigawatts of solar panels each year. That's 10 times more than produced from the country in 2008 and 61 percent more than all PV module output installed worldwide last year.
On watch today include names like LDK Solar (NYSE: LDK), Suntech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), Trina Solar (NYSE: TSL), JA Solar (Nasdaq: JASO), ReneSola (NYSE: SOL), and others.
Bloomberg reported today that China's Ministry of Industry and Information Technology is planning to curb PV plant expansion. The MIIT said companies must spend more than 3 percent of annual revenue on equipment upgrades and R&D, and must also exceed RMB10 billion (about $1.6 million).
While China isn't looking to shutter any operations, it would feel more comfortable if companies looked to partner up or merge.
Most solar companies felt a pinch in 2012 as oversupply led to a 20 percent drop in prices. If China was running at full speed, the country would be able to produce 49-gigawatts of solar panels each year. That's 10 times more than produced from the country in 2008 and 61 percent more than all PV module output installed worldwide last year.
On watch today include names like LDK Solar (NYSE: LDK), Suntech Power (NYSE: STP), Yingli Green Energy (NYSE: YGE), Trina Solar (NYSE: TSL), JA Solar (Nasdaq: JASO), ReneSola (NYSE: SOL), and others.
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