The curse of being the leading Chinese solar module producer appears to have struck for the second time. Reports are coming in that Yingli has suspended production, after talks with its creditors broke down.
Concerns about Yinglis large debt burden have been mounting in recent months, and it appears that it may be endangering the companys production. After making an announcement several weeks ago that it may not be able to meet debt obligations, speculation has mounted that the company itself may be at threat.
Todays reports of Yingli suspending production of PV modules would seem to indicate that it has run short of cash.
Yingli has refuted the reports of a production shutdown, in a statement issued today (Thursday), saying that it is continuing to serve its customers.
Yinglis chief financial officer, Yiyu Wang, commented: "In response to recent rumors that Yingli has halted production, I can confirm that this is untrue. We are in production today and are continuing to meet our customers needs."
Speaking to pv magazine last month, BNEF solar analyst Jenny Chase said that Yinglis strategy of selling high volumes at low prices had, put enormous stress on its balance sheet.
It wasnt crazy thinking because I think during the very tough years, 2013 especially, a lot of these companies had to sell at a net loss or simply close up factories and give up, said Chase. So I think that the rationale behind selling below cost is not always terrible, but when it puts a company in a position where it cannot service its debt obligations that is not ideal.
As recently as two days ago, Yingli was tweeting images of shipments of its 250 W and 300 W Gen 2 modules leaving its factory, bound for Africa.
Yingli’s response to the initial reports of a shutdown was added to this article on the day of publication.
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