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But the largest of them, Wuxi-headquartered Suntech Power Holdings Co. Ltd., is about to breathe a little easier after securing several deals with the Chinese Government and opening factories in the United States to mitigate pressures from shrinking demand in European markets.
Orders are being placed and shipments are on the rise, though the NYSE-listed company posted an 81-percent plunge in second-quarter earnings on August 20, as revenues tumbled due to sharply lower prices for its products.
"A seasonal pickup in demand combined with a gradual thawing of global financial markets and improving project returns led to sequential shipment growth in most of our major markets," the company said in its quarterly report. "Despite pricing pressure, our continued reduction of silicon costs enabled us to improve our gross margin."
While Shi Zhenlong, founder of Suntech Power, has successfully navigated the solar energy giant to a safe place and managed to pull a profit while most of the company's Chinese peers have reported losses, a massive reshuffling of the industry's excess capacity is inevitable.
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