Update: Reports of a halt in production at Yingli

Share

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 Yingli’s large debt burden have been mounting in recent months, and it appears that it may be endangering the company’s 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.

Today’s 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.

Yingli’s 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."

Popular content

Speaking to pv magazine last month, BNEF solar analyst Jenny Chase said that Yingli’s strategy of selling high volumes at low prices had, “put enormous stress on its balance sheet.”

“It wasn’t 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.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.