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Chinese solar companies to fight groundless accusation

Post Time:Oct 16,2012Classify:Industry NewsView:303

Three Chinese solar companies listed in the U.S. said they would take action to fight what they called groundless accusations from bankrupt American company Solyndra which filed an anti-trust lawsuit on October 11, China Business News reported.

 

In the lawsuit filed at a court in California, Solyndra, which declared bankruptcy last year, accused Suntech, Yingli Green Energy Holding Co., and Trina Solar Ltd. of predatory pricing and price fixing, and bringing down the price of solar panel by 75 percent in America over four years, rendering its products uncompetitive and leading to its collapse. The American company is seeking US$1.5 billion in compensation.

 

Responding to the case, Trina said, "The lawsuit is groundless. We will actively protect ourselves from the utterly baseless accusations," adding "it is not immediately estimable how the case will affect the company's business."

 

Wang Zhixin, head of publicity at Yingli Green Energy said: "Now some American companies are good at blaming other companies for its failed business. Chinese companies are their major targets. We will surely take actions and won't allow others to tarnish us and other Chinese companies."

 

Dylen Liu, vice president of the investment research firm Pacific Epoch, pointed out that Solyndra went bankrupt because it lost its competitive edge. Its innovation – the CIGS (copper indium gallium selenide) thin-filmed solar cell – was not only premature but also costly, and only plunged the company into financial difficulty, he said.

 

Responding to Solyndra's allegation that Chinese solar part manufacturers formed a cartel with Chinese silicon producers, financial organizations and government departments to make the market prices lower than cost, Liu explained that solar product parts are sold cheaper than their costs worldwide. In order to maintain liquidity, solar companies are forced to sell their products below cost. This is a result of market competition instead of monopoly, he said.

 

Zhang Yunzhong, a lawyer at Beijing-based Wentian Law Firm expressed an upbeat opinion about the case. He said that the case would not largely impact Chinese companies for two reasons: Firstly, Chinese companies remain competitors and have never formed an alliance. Secondly, none of these companies enjoy a large enough share in the American market.

 

Solyndra used to be model of the American solar industry. In 2009, it received nearly US$535 million in federal loans approved by the Obama Administration in order to boost the American clean energy industry and create jobs. Its bankruptcy put the White House under fire and is likely to affect Obama's re-election campaign.

 

Source: http://www.china.org.cnAuthor: shangyi

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