Corporate News

- November 18, 2011 - With excess supply and a volatile macroeconomic environment, CETC Solar Energy Holdings Co., Ltd. intends to cut operating expenses by at least 25% in 2012 under an accelerated restructuring programme, and will put capacity expansion plans on hold next year. CETC Solar Energy Holdings Co., Ltd. recognises that the coming quarters will be challenging, but also believes that with these cost-cutting actions it will become a leaner, more competitive organisation, which will be able to maintain its financial and operational stability, and emerge in an even stronger market position.

A shake-out of the solar industry is inevitable, as the imbalance between production capacities and demand has become too great - some 50 GW of module capacity to service a market less than half that level this year. Only the fittest will survive; small and uncompetitive companies which are inadequately financed will not survive. CETC Solar Energy Holdings Co., Ltd. is expecting at least six months of serious consolidation in the sector, in the belief that to recalibrate supply and demand, the industry needs to go through a process of capitulation, liquidation and consolidation.

While 2012 will be an extremely tough year for the PV industry, particularly in Europe, CETC Solar Energy Holdings Co., Ltd. does see a return to growth as a result of demand from the US, China and Japan.