China may shutter up to three quarters of its solar-grade polysilicon producers, according to a
Reuters report, in an attempt to streamline the local industry and prep it for international competition.
With approximately 40 companies producing the polysilicon and demand for solar panels fading internationally, Chinese authorities may look to use existing inventories to quadruple its local solar energy production capacity in an effort to buffer the industry.
Experts suggest the country is looking to half its polysilicon production capacity and focus on innovation to compete with Germany’s Wacker Chemie AG (
GREY:WKCMF,Stock Forum) and South Korea’s OCI Co., among others.
Prices have reportedly dived to $20 per kilogram for polysilicon, down from nearly $400 per kg five years ago, and –in a rare turnaround- superior and cheaper imported products from the United States have put the squeeze on local suppliers, leading to questions as to whether China should impose anti-dumping rules on solar imports.
Reuters suggests GCL Poly (
GREY:GCPEF,
Stock Forum), TBEA Co. and China Silicon Corp will be the winners in the industry chokedown, while foreign firms such as MEMC Pasadena (
NYSE: WFR,Stock Forum) and Hemlock Semiconductor will also benefit.