This year’s period of intense over-supply in the solar sector has continued to pressure solar players, leading to a recent batch of announcements of cut-backs and cost reductions. All of this may simply seem to be a continuation of the recent slew of bad news that has plagued the industry in the past few months. However, in the end, it is likely to be seen as at least one of the antidotes to the sector’s troubles.
‘While continuing to focus on production efficiency, the initiatives target to reduce operating expenses by at least 20% in 2012; hold capacity expansion in 2012; and improve working capital by $200 million by the end of 2011′.
- Suntech Power, as mentioned above, has halted new capacity increases until the end of 2012
- JA Solar (JASO): halt to capacity increases
- Trina Solar (TSL): halt to capacity increases
- First Solar (FSLR) has delayed the construction of its new plant in Vietnam
- SunPower (SPWRA): 10% cost reductions.