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World’s Cheapest & Biggest upstream Solar Producer, GCL Poly forecasts big loss in 2013

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GCL Poly

China based GCL Poly is the biggest solar wafer producer in the world. GCL Poly raised its wafer capacity almost 85% in 2011. The company’s strategy of setting up plants near its major customers landed it major deals and lower the cost in the supply chain. This Chinese company  became one the biggest producers of polysilicon and wafers in 2010, from zero in 2008.

The Company has now warned its investors that it expected a “substantial” loss for the year 2012. The company tried to avoid losses, by significant cost reductions earlier. The main reasons for this unavoidable circumstance are:

i) Significant overcapacity in the polysilicon market

ii) The imposition of US duties and

iii) European Crisis.

The 2012 results are expected to be out by the end of March. As a result of his announcement, the shares of GCL Poly have declined after a 100% rally in the last few months. GCL Poly has been running at a 50% utilization as the spot prices of polysilicon have gone below the cash costs of most producers. Most of the other big producers like Hemlock, Wacker, OCI have also reduced prodcution and halted earlier plans of expanding capacity. LDK which has a high cost poly plant has stopped production entirely as its costs are almost 100% higher than the current ASP.

GCL Poly might benefit if China imposes duties on imports of poly from European and US producers. However, the increase in price may not be much given the huge overcapacity. Also bigger solar panel companies might find workarounds.

Read more about China Solar Panel Companies.

PV Tech

China’s largest solar grade polysilicon producer, GCL-Poly Energy Holdings, has warned that it will incur a substantial but not detailed profit loss for the full-year 2012.

The company had posted a 2012 first-half year loss of HK$330 million due to weaker than expected demand and rapidly falling ASPs, despite continued manufacturing cost reductions.

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Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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