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

People & Company News

MN100: R.W. Fernstrum & Company

The Company: R.W. Fernstrum & Company set the standard in marine heat exchangers over 65 years ago, building a reputation focused on innovation. Today, its commitment is to continual improvement,

MN100: McDonough Marine Service

The Company: Bernard P. McDonough created the company in 1945 by leasing barges from his construction company into the marketplace. Through a series of new and used barge additions,

MN100: MarineCFO

The Company: Founded in 1992, UA Business Solutions was a pioneer in the field of Enterprise Resource Planning (ERP) and an early Microsoft Partner. The ERP evolution


El Faro Captain Ordered Crew to Abandon Ship before Sinking

The captain of the doomed El Faro cargo ship sounded an alarm for his crew to abandon the vessel shortly before it sank last fall in a hurricane near the Bahamas, killing all 33 onboard, the U.

Foreship Establishes Tallinn Subsidiary

Naval architect and marine engineering company Foreship has created a wholly-owned subsidiary located in Tallinn to strengthen ties with shipowners, shipyards and

UASC's Dismal Performance

United Arab Shipping Company (UASC), which is close to merging with Hapag-Lloyd, revealed enormous deficits and a massive debt in its key financial figures, says Alphaliner.


China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

Cosco Eyes Spanish port of Algeciras

Algeciras Bay Port Authority in southern Spain has put up a tender for its third container terminal, and China's Cosco Shipping Ports is already being mentioned as a fore runner candidate,


SMM 2016: World Premieres from around the Globe

Some 50,000 trade visitors from the whole of the world are expected in Hamburg for the start of SMM in less than two weeks. And once again, it is fully booked – with a total of more than 2,

South Asia Meet on Oil, Chemical Spill Contingency Plan

A meeting to update South Asia’s regional plan for oil and chemical pollution preparedness and response is underway in Male, Maldives (22-25 August), informs  International

Lucas Marine, Harbor Breeze Cruises Partner to Cut Fuel Costs

Lucas Marine is partnering with Harbor Breeze Corporation to help reduce the yacht charter and cruise company's fuel costs, maintenance and environmental impact in Los Angeles and Long Beach Harbors.


J.F. Lehman Acquires Oldenburg's Heavy Equipment Group

J.F. Lehman & Company (JFLCO) informs it has signed a definitive agreement with Oldenburg Group Incorporated to acquire its Heavy Equipment Group, including both its defense and mining business units.

Wärtsilä Re-gasification system for Norwegian Ship Conversion

Wärtsilä has been contracted to supply the re-gasification system for an FSRU (Floating, Storage, Re-gasification Unit) conversion project that Höegh LNG plans to carry out on a modern LNG vessel.

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced


Iran Vessels Make 'High Speed Intercept' of US Ship

Four of Iran's Islamic Revolutionary Guard Corps (IRGC) vessels "harassed" a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid

Shots Fired: US Navy Ship Warns Iranian Vessel

A U.S. Navy ship fired warning shots after an Iranian fast-attack craft approached two U.S. ships in the northern Gulf on Wednesday, a U.S. Defense official said.

Liftboat Jinshan 1 Delivered

A 97.5m truss-legged liftboat designed by A. K. Suda (SUDA) has been completed and is being delivered to its owner, following on the heels of a 91.5m truss leg liftboat delivered earlier this year.

Marine Equipment

MN100: R.W. Fernstrum & Company

The Company: R.W. Fernstrum & Company set the standard in marine heat exchangers over 65 years ago, building a reputation focused on innovation. Today, its commitment is to continual improvement,

Heavy Lifting: Giant Pipe Racks Shipped for New FPSO

From Brazil to China and then back to Brazil, five pipe racks and three modules weighing a total of 1,871.51 metric tons and measuring 24,075 m³ will be transported

Alfa Laval Launches DuroShell LPG/E Cargo Condenser

With the new Alfa Laval DuroShell plate-and-shell heat exchanger, Alfa Laval aims to strengthen its offering in LPG/E cargo reliquefaction with a construction that

Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.2040 sec (5 req/sec)