Suntech Power Holdings Co Ltd is China’s biggest maker of solar panels. They plan to invest the equivalent of $393 million for a 1 GW production capacity that they will set up in Shanghai. This is because of the rising demand for solar panels in the next three years.
It has been reported that the subsidies for German solar power will be reduced, resulting in fewer demands by the third quarter. However, the Chairman of Suntech, Zhengrong Shi, pointed out that this does not affect the overall attractiveness of solar power demand for Germany. Even more than that, the demands from the United States and other countries are growing quickly.
Suntech can no longer keep up with the demand, they are short capacity-wise, and the clients need more than they can give. That’s why they need to respond with huge investments. In fact, they stated that they do not feel effect of subsidies reduction from Germany.
Suntech even predicts that Germany’s market growth for solar cells will reach around 70 percent, while it will double in the United States. The company intends to complete the 1.4 GW production within this year, and by the end of June, the new Shanghai plant’s initial phase will be completed.
