ReneSola Looks to Beat U.S. Duties

Posted by Michelle Howard
Tuesday, August 12, 2014
Photo courtesy of ReneSola

To use OEM partners to ship 500 MW panels to US in 2015; OEM capacity expected to reach 1.2 GW by end of 2014.

 

Chinese solar panel maker ReneSola Ltd said it would use contract manufacturers across the globe to continue selling panels in the United States, which has imposed anti-dumping duties on solar products made in China and Taiwan.

The United States extended tariffs to Taiwan last month after Chinese companies tried to sidestep the duties by moving the production of cells, which go into their panels, to Taiwan.

ReneSola said on Tuesday that it would use partnerships with original equipment manufacturers (OEM) to supply as much as 500 megawatts (MW) of solar panels to the United States next year.

The company's U.S.-listed shares fell about 4 percent to $2.73 in early trading.

"There is no escaping the fact that making the supply chain more complicated and geographically spread out will raise production costs, but it's almost certainly better than paying tariffs that average 30 percent," Raymond James analyst Pavel Molchanov said.

Other Chinese solar companies may follow in ReneSola's footsteps, analysts said, even if that means higher costs for an industry which returned to profitability only in 2013 after years of margin erosion due to weak panel prices.

ReneSola plans to scale up its OEM partnership capacity to 1.2 gigawatt (GW) by the end of 2014 and 1.5 GW by mid-2015. The company, which has 1.1 GW of solar panel capacity spread across 11 factories in seven countries, said it planned to expand OEM partnerships in India, South Korea, Turkey and parts of Europe.

ReneSola said it would continue to use cells made in Taiwan in products shipped to Europe, where tariffs are imposed only on solar products made in China.

The company's "global-centric business model" would help the company report strong results over the rest of the year, Chief Executive Xianshou Li said in a statement.

Lower Costs
ReneSola forecast third-quarter panel shipments of 530-550 MW, higher than the 498.7 MW it shipped in the second quarter.

The company also forecast gross margin of 15-17 percent for the quarter. Margins almost doubled to 14.7 percent in the quarter ended June 30 as in-house polysilicon production helped ReneSola lower costs.

Cost of revenue fell about 5 percent to $330.2 million in the quarter, while revenue rose 2.6 percent to $387.1 million.

Net income attributable to ReneSola shareholders was $757,000, or 1 cent per American depositary share (ADS), in the second quarter, compared with a loss of $21.1 million, or 24 cents per ADS, a year earlier.

 

By Swetha Gopinath

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

China COSCO to be First through the Expanded Panama Canal

China COSCO Shipping has won the draw for its container vessel Andronikos to make the ceremonial first transit through the Expanded Panama Canal during the waterway’s inauguration on Sunday, June 26.

Sellick Equipment to Open New Facility

On April, 20, 2016, at the young age of 97 years, Walter Sellick along with sons Howard Sellick - President, David Sellick - Vice President and grandson Colin Sellick - Systems Manager,

Asia Tankers-VLCCs Rates Ease as Tanker Jams Fade

Port congestion eases at Basra and Chinese ports; tanker demand set to expand on lower oil prices. Freight rates for very large crude carriers (VLCCs), hurt by slower-than-usual release of cargo,

Finance

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

Baltic Index Down on Lower Capesize, Panamax Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Friday, as demand for capesize and panamax vessels fell.

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

Energy

Russia Diesel Exports from Primorsk to Rise in May

Russia is set to export 1.256 million tonnes of ultra-low sulphur diesel from the Baltic Sea port of Primorsk in May, slightly up from 1.209 million tonnes in April, trading sources said on Friday.

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

Pressure Steady on LNG Shipping Rates -Drewry

LNG shipowners will have to wait until 2018 for earnings to improve, when the majority of new US plants are expected to come online, according to the latest edition

News

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Conquest Installs 850t Crane on Allseas Solitaire

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

Marine Equipment

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Conquest Installs 850t Crane on Allseas Solitaire

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.

Sellick Equipment to Open New Facility

On April, 20, 2016, at the young age of 97 years, Walter Sellick along with sons Howard Sellick - President, David Sellick - Vice President and grandson Colin Sellick - Systems Manager,

Government Update

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

Pacific Nations Take a Stand on Shipping Emissions

On Earth Day, Pacific leaders queued among 175 countries to sign the Paris Agreement in New York. Earlier that day in London, the International Maritime Organization (IMO),

EU Clears CMA CGM, NOL Merger, with Conditions

The European Commission said on Friday it had cleared French shipping group CMA CGM's $2.4 billion takeover of Neptune Orient Lines on condition that NOL pulls out from a rival shipping alliance.

 
 
Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1433 sec (7 req/sec)