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 Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Joe Pyne Joins DHT Holdings’ Board of Directors

Crude oil shipper DHT Holdings, Inc. announced today that it has appointed Joseph H. Pyne to its board of directors, expanding the board from three to four independent directors.

TEN Charters Tanker at 20% Premium

Tsakos Energy Navigation Limited announces two-year charter renewal at a 20 percent premium to prior contract reflecting strong tanker market fundamental, oil price

Huntington Ingalls Cites Interest in Building US Icebreakers

Huntington Ingalls Industries Inc, which builds aircraft carriers and U.S. Navy warships, on Tuesday said it was keen to bid to build new icebreakers for the U.

Finance

TEN Charters Tanker at 20% Premium

Tsakos Energy Navigation Limited announces two-year charter renewal at a 20 percent premium to prior contract reflecting strong tanker market fundamental, oil price

Brent Crude Falls More than 7 Percent

Brent crude futures tumbled more than 7 percent on Tuesday, falling back below $50 a barrel as data highlighting China's contracting manufacturing sector revived

Gunvor Emerges as Winner in Rosneft's Jumbo Oil Tender

Trading house Gunvor, which has been selling assets in Russia, has again emerged as the winner of a semi-annual Rosneft tender, traders said on Tuesday.   They said Gunvor would lift from 200,

Environmental

MN: Corvus Energy

The Company: Corvus is a manufacturer of proven, high power Energy Storage Systems (ESS). Its field proven battery systems provide power to hybrid and fully electric marine propulsion systems.

LNG-fueled Box Ship a 'Momentous Step Forward'

On Saturday, August 29, 2015, the world’s first series of energy efficient containerships welcomed its second LNG-powered vessel in San Diego, fueling the U.S.

Liam Means Business for Shipping Cluster

Enterprising student Liam Finch has been putting his summer days to good use by working on an important survey for the Isle of Man Shipping Association (IOMSA).

Energy

Nigeria Ramps up Push to Eradicate Oil Theft

Nigerian authorities hope to put an end to rampant oil theft in eight months by increasing drone and naval monitoring of territorial waters and working with local communities,

MN: Corvus Energy

The Company: Corvus is a manufacturer of proven, high power Energy Storage Systems (ESS). Its field proven battery systems provide power to hybrid and fully electric marine propulsion systems.

Brent Crude Falls More than 7 Percent

Brent crude futures tumbled more than 7 percent on Tuesday, falling back below $50 a barrel as data highlighting China's contracting manufacturing sector revived

News

Latest ShipConstructor Update Targets Offshore

With the release of ShipConstructor 2016 R1.1, SSI said it provides additional enhancement for the offshore rig construction market, particularly with regards to weld management.

Runaway Crane Barge Sinks on the Mississippi

The U.S. Coast Guard is working with a team of responders to recover a runaway crane barge that sunk near Convent on the Mississippi River.   The crane barge

Joe Pyne Joins DHT Holdings’ Board of Directors

Crude oil shipper DHT Holdings, Inc. announced today that it has appointed Joseph H. Pyne to its board of directors, expanding the board from three to four independent directors.

Marine Equipment

Runaway Crane Barge Sinks on the Mississippi

The U.S. Coast Guard is working with a team of responders to recover a runaway crane barge that sunk near Convent on the Mississippi River.   The crane barge

MN: Corvus Energy

The Company: Corvus is a manufacturer of proven, high power Energy Storage Systems (ESS). Its field proven battery systems provide power to hybrid and fully electric marine propulsion systems.

Total Lubmarine Resumes Full Service in Tianjin

Marine lubricants and greases provider Total Lubmarine informs it has resumed all services based out of the Port of Tianjin following the deadly explosions that rocked the port August 12.

Government Update

Huntington Ingalls Cites Interest in Building US Icebreakers

Huntington Ingalls Industries Inc, which builds aircraft carriers and U.S. Navy warships, on Tuesday said it was keen to bid to build new icebreakers for the U.

Oil Exports Could Push US Gasoline Prices Lower

The price of U.S. gasoline could fall if Washington were to allow crude oil exports, an independent government report on Tuesday concluded, adding political firepower

Migrant Crisis Promts Call to IMRF for Help

Mediterranean Rescue Services are in urgent need of support because they are struggling to keep up with the replacement of equipment being used to rescue the increasing

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Pipelines Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
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: 0.6034 sec (2 req/sec)