Suntech embarks on panel fire sale27. May 2013 | Applications & Installations, Global PV markets, Industry & Suppliers, Investor news | By: Max Hall
Chinese panel giant Suntech has sparked fears it will start a fire sale of its huge inventory by agreeing to sell 30 MW of its products to a rival manufacturer for just US$0.49/Watt.
Bloomberg has reported that Jiangsu based vertically integrated manufacturer Shunfeng Photovoltaic International Ltd has benefited from Suntech Power Holdings Co.'s liquidation prices to buy the panels and a project near the Mongolian border.
Shunfeng produces its own ingots, wafers and modules and the 29.7 MW Kumul solar project will be its first development.
The Shunfeng website states that the company: "takes the operating principle of vertical integration from upstream to downstream industry chain derivative development" but, presented with an offer it couldn't refuse, Shunfeng signed on the dotted line.
The purchaser has reportedly paid Y3.96 million (US$647,000) for a 99% stake in the project and will pay a total Y89 million, in stages, for the 29.7 MW of Suntech panels.
According to Bloomberg New Energy Finance, that price of 49 cents per Watt is 32% less than the average panel purchase price of 72c, calculated on May 22.
With the global solar industry showing the first tentative signs of a stabilization of panel prices, any decision by the former world number one supplier to slash the price of its extensive inventory is unlikely to be well received.
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