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In the wake of overcapacity and the Chinese Government’s decision to discontinue giving financial aid to 80% of its companies, another Chinese company was successful in bagging a whopping US$800 million (CNY 5 billion) from the China Development Bank. This decision came after GCL Poly (GCL) decided to get its name changed to GCL New Energy. The name change shows the company’s increased interest in the downstream solar business, with a mission to reach more and more households in China. Also GCL Poly plans to build Solar farms in China and spend more on its technological R&D. GCL Poly forecasts promising and robust solar figures for 2014.
Chinese Government’s Criteria for Granting Finance to its companies
The Chinese Government given the overcapacity in the Chinese market, had listed 109 Chinese companies who will receive support from the government and be allowed to bid for government tenders. The Chinese Government also lists other criteria for the Chinese companies to receive financial help:
i) Ship at least 1500 metric tons of polysilicon or
ii) 400 MW of solar modules, cells, or wafers and
iii) gross margins in excess of 10% for Q3 2013.
The Solar Industry in 2014 is expected to be more robust and competitive with industry consolidations resulting in the weaker companies getting out of business. Rigorous steps have been taken by the states worldwide to further strengthen this process. It remains to be seen if GCL Poly emerges out as a winner in 2014, with all the support and optimistic predictions in its bag.
Mr. Zhu Gongshan, chairman of the board of GCL-Poly, said: “The support from China Development Bank will strongly promote the development of GCL-Poly’s solar farm business. We will continue to increase R&D investment in the area of technology innovation in order to achieve vertical integration along the solar value chain.”
1 Comment
We should learn the lesson from China, how Chinese became competitive in international market. On the basis of cost and quality Chinese firms captured international market. Government of China strongly supported to its companies to gain competitive in international market.