The hottest photovoltaic industry has been hit rep

2022-09-21
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The photovoltaic industry has been hit repeatedly, and the industry lacks self-discipline and norms

the government and the industry should absorb lessons, deal with overseas trade protection, promote mergers and integration according to market rules, and carry out self-discipline and norms of the industry at the same time

following the preliminary determination of the "double anti" of the United States, the EU's photovoltaic anti-dumping case against China has also come one after another, and the Chinese photovoltaic enterprises suffering from the cold are in the situation of hard winter, with unprecedented pressure

Gao Jifan, chairman and CEO of Trinasolar energy (nyse:tsl), a Chinese photovoltaic manufacturer, recently received an exclusive interview with Caixin, and expressed his views on the current development difficulties of the photovoltaic industry, the double anti problems in the United States and Europe, and the merger and integration of the industry

Caixin: a week ago, the European Commission launched an anti-dumping case against Chinese photovoltaic products, which stimulated the fierce defense of Chinese photovoltaic enterprises. As one of the affected Chinese photovoltaic enterprises, what do you think should be done

Gao Jifan: This is a huge pressure on Chinese enterprises. At present, on the one hand, we should actively communicate and respond from the legal and procedural aspects, so that the EU Trade Commission can take a more fair and reasonable approach in future investigations; On the other hand, filing a case does not mean that a final ruling must be made. On August 30, the prime ministers of China and Germany reached a consensus on this matter in Beijing - to avoid anti-dumping through communication and consultation

in November this year, the National Trade Commission of the United States will make a final ruling on the "double anti" case of Chinese photovoltaic enterprises. We are also actively working with industry enterprises to vigorously defend, hoping to reduce the negative impact at the final determination. At the same time, Trinasolar has also made business arrangements under various circumstances. Now it is cooperating with enterprises in Taiwan, Malaysia and even Canada to meet the needs of the U.S. market through production in overseas markets

Caixin: there are media reports that Trinasolar has recently made large-scale layoffs to cut costs. Can you introduce the specific plan of layoffs

Gao Jifan: This is organizational optimization and streamlining to reduce costs and improve decision-making efficiency. Trinasolar has reduced some departments and carried out hierarchical consolidation, which will reduce more than 200 managers, accounting for about 12% of the global managers

Caixin: Trinasolar has recently established four business divisions - Europe, America, China, Asia Pacific, and the Middle East and Africa. What are the characteristics of these four markets and what are the market strategies of Trinasolar

Gao Jifan: Europe is a relatively mature market. As there is a continuous plan to reduce carbon emissions, although the European economy has encountered some difficulties, it will move forward steadily. However, the population and total energy demand of Europe account for a relatively low proportion in the world, and solar energy has developed to a very high level. The future development increment of Europe will not be too large. Trinasolar will consolidate its position in the European market

the American market, including North America and Latin America, has different characteristics. We have a certain foundation in the North American market and will continue to consolidate the ability to conduct one-time injection molding. The conditioning and stability of the screw speed in Latin America is an important process requirement for the main engine transmission. 1. The continental market has a very large development space. Emerging market countries such as Brazil are developing rapidly, and the energy shortage is still obvious, especially the foundation of the original electricity is relatively weak. For example, Brazil wants to develop new industries or mining areas in some areas, but electricity is not covered. Due to the problem of land privatization, it may take five to ten years to build electricity in those places, and new mining areas and new factories can't wait at all. At this time, if solar power generation is the main body, plus some other distributed energy to supply it, it is a very good choice

the Asia Pacific market is relatively diversified. There are very mature markets such as Japan and Australia, emerging markets such as Southeast Asia and even Africa, and of course, the Middle East, which used to be dominated by oil, is now turning to solar energy, which is relatively diversified, and there are many new development opportunities. On July 1 this year, we separated China from the Asia Pacific region, which marks that the Chinese market will account for more than a quarter of our business segment in the future. The desert power station in the West and the roof photovoltaic system in the east of China will develop synchronously. In particular, where the eastern region is close to the energy load, vigorously developing large-scale rooftop solar power plants in industrial parks will be of great benefit to the imbalance of energy between the East and the west of China and the reduction of government subsidies

Caixin: what kind of industrial incentive policies are most expected now

Gao Jifan: how to guide the photovoltaic industry and photovoltaic enterprises on a good road, I think there are three things worth noting. First, expand the domestic market. In 2011, China produced more than 20 gigawatts, and the demand in China was only 2.8 gigawatts, accounting for one tenth of the total output. This is far from enough. This year, it will probably exceed 5 gigawatts, accounting for 20%, which is very good. But I think the Chinese market should be promoted to more than 10 gigawatts as soon as possible, which can account for 40% to 50% of China's output, which is reasonable for China. I think we can do it next year

but if we only open the market, it will also bring some new problems. Maybe everyone is developing in a swarm, which is not necessarily a good thing. While expanding the market, we should promote the reshuffle of this industry according to the principle of marketization as soon as possible. All the problems facing this industry now, whether foreign double reverse or loss, are related to only one thing, that is, excessive competition. At this time, the government departments should form an environment to truly eliminate the fittest, so that enterprises with poor business quality can be merged and reorganized in this process, so that advantageous enterprises can have the opportunity of merger and reorganization. After merger and reorganization, the existing assets can play a greater value, and the industry can be further upgraded through the current pressure

the third point is that in the past, we have been promoting the great development of the industry, and the management of the industry is relatively rough. The industry itself mainly encourages development and does not encourage industry self-discipline, resulting in an uncontrolled state of the industry. I think the whole government and industry should absorb this lesson, while dealing with overseas trade protection, while promoting mergers and integration according to market rules, and at the same time, carrying out industry self-discipline and standardization

Caixin: where will the mergers and acquisitions in the photovoltaic industry come from? Are these large factories now or are they more state-owned enterprises

Gao Jifan: the principle of mergers and acquisitions is to make assets more capable of creating value. But now I also have some concerns. It is possible that some local state-owned enterprises or central enterprises in the process of mergers and acquisitions do not fully follow the market-oriented behavior - it is easier for them to obtain bank support, and there are also various transactions with local governments. Colleagues and customers also bring product samples and relationships to be tested by their factories. Such mergers and acquisitions are bad for the industry, because excessive competition may not be eliminated, which may cause mergers and acquisitions to be launched again after a year or two. Strictly speaking, such tossing is not too negative for these assets. I think the government should create an environment for advantageous enterprises to carry out mergers and acquisitions in accordance with the principle of marketization. Whether foreign-funded, private or state-owned enterprises should enjoy the same treatment and give policy and financial support. Only when these enterprises become stronger after mergers and acquisitions can they be regarded as an effective way. But whether these things can be achieved at present is a big problem. Zhonghua glass () Department

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