by Did67 » 21/03/13, 17:28
FYI, Chinese companies are also starting to experience bankruptcy (according to the website of the newspaper Le Monde):
On the global playing field of competition between industrialists, the misfortune of some is supposed to make the happiness of others. After the massacre that affected European and American manufacturers of solar panels, the hour of revenge would have struck with the bankruptcy, Wednesday, March 20, of the Chinese giant Suntech.
Long the world number one in solar energy, listed on the New York Stock Exchange, the Chinese group is crumbling today in debts and its main production subsidiary is in default. Seeing finally burst the solar bubble fueled for years by Beijing, with subsidized loans and subsidies, is good news. But that will not raise from the ashes the French industry which has lost several thousand jobs in two years, nor the German one, marked by the bankruptcy in 2012 of Q-Cells, the ex-number one European bought since by the Korean Hanwha. The United States also counts their businesses fallen into this big mess.
Like its peers, Suntech profited, during the period of exponential growth of the world solar market, from the "EPO" of state capitalism practiced in China. This group, whose boss fired this week was said to have been nicknamed the "king of the sun" because of his glory, took advantage of the tap opened by public banks at the request of Beijing. Like Icarus, Suntech always had to climb higher. In fact, Chinese manufacturers, after the others, have conquered some 80% of the global solar panel market.
The problem with state support, in Beijing as in Paris, is that it has, like drugs, limited effects. It is enough to even reduce the dose to cause a crisis in the subject. Worse, it is the perverse effects of EPO which, even in the event of successful withdrawal, leave consequences which can reduce life expectancy.
It turns out that Beijing has decided to end the party. Eight public banks have decided to cut supplies to Suntech in default on a maturity of 540 million dollars (418 million euros). These securities had been issued from a subsidiary in the Cayman Islands, mainly to American investors. Because as long as the EPO takes effect, the sponsors are not very attentive ...
But beware, the story did not stop at Icarus. If China has chosen to stop its blind support, there is nothing to indicate that it intends to abandon this sector. On the contrary. The solar companies are on the carpet, the market, it remains promising. EPO is over, make way for strategy iindustrial.
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