According to documents, Hanwha Solutions Corporation, a South Korean conglomerate, will terminate its solar manufacturing operations in China. Currently, the company is expanding its operations in the United States.
On Thursday, April 25th, Bloomberg reported that Hanwha Solutions Corporation’s subsidiary, Hanwha Q Cells, the largest solar producer in South Korea, will permanently close its factory in Qidong City, Jiangsu Province, China on June 30th, as stated in a filing submitted to regulatory authorities.
A spokesperson for the company revealed that the soon-to-be-closed factory produces 2.1 gigawatts of solar cells annually and 2.3 gigawatts of components, supplying components to Europe, Japan, and South Korea.
Hanwha Q Cells stated that the company will focus on its development in the United States and has committed to investing billions of dollars in establishing a comprehensive integrated supply chain in the U.S.
Q Cells is also one of the beneficiaries of the Biden administration’s Inflation Reduction Act, which provides tax incentives for new manufacturing capabilities in the country, considered a groundbreaking legislation encompassing taxation, healthcare, and climate change.
The decision to cease production comes at a time when the solar industry in China, the world’s leader, is facing overcapacity and escalating competition leading to price declines, making the closure of factories in China a growing trend. Declining profits have forced some businesses to cease operations to reduce costs.
More and more countries globally are beginning to resist the dumping of Chinese-manufactured products.
On Wednesday, April 24th, the American Alliance for Solar Manufacturing Trade Committee issued a statement alleging that Chinese companies with factories in Malaysia, Cambodia, Vietnam, and Thailand have been selling solar panels in the U.S. market below production costs, resulting in price drops exceeding 50%, thus posing a threat to products manufactured in the U.S.
Seven leading solar manufacturing companies, including U.S.-based First Solar, Convalt Energy, Mission Solar, and Swift Solar, South Korea’s Hanwha Q Cells, Switzerland’s Meyer Burger, and Norway’s REC Silicon, have submitted a series of anti-dumping and anti-subsidy tax applications to the U.S. International Trade Commission and the U.S. Department of Commerce.