Comments on: Jiangsu Shunfeng’s Acquisition Of Suntech To Top $540 Million

By: dylanpete

dylanpete — Tue, 12 Nov 2013 11:47:00 +0000

Yes, the Chinese government is expected to increase efforts to stimulate renewable energy. Environmental protection is told to be an important topic for The Third Plenary Session of the 18th CPC Central Committee that ends today. So we might expect some announcements in the coming days.
In the meantime Shandong province has already increased subsidies for distributed solar and other provinces may follow soon.

By: Bob_Wallace

Bob_Wallace — Tue, 12 Nov 2013 01:29:00 +0000

China also has grid difficulties. I read something, somewhere recently about China moving harder on distributed solar as a way to get more renewables on line while they improve their grid to deal with more wind.

By: Matt

Matt — Mon, 11 Nov 2013 23:33:00 +0000

Ming might also have information from the inner circle of China government that the amount of planned PV installs in China are about to get a big bump, including help. They have to do something more aggressive about their air, closing cities is not a workable solution. If in 3-6 months we get big news on that front, then this deal will look a lot better.

By: JamesWimberley

JamesWimberley — Mon, 11 Nov 2013 14:56:00 +0000

Cheng Kin Ming is a risktaker. His other solar investment, LDK, is just keeping its head above water. But the recovery in the market is rapid and his bet may pay off handsomely. Perhaps he’ll press for a merger to make a challenger for the top slot.

The numbers in the report aren’t easy to stick together, but Suntech is having to write off substantial cell production capacity as obsolete. Less so for modules, a slower-changing part of the chain. It’s reasonable to think that this pattern is replicated across the Chinese solar industry. As the leaders continue to drive up quality and drive down costs, they strand more and more assets of the laggards.