Ministry of Industry and Information Technology: Promoting the restructuring of the photovoltaic industry to support the formation of 15 giants

Abstract On the last day of 2014, the Ministry of Industry and Information Technology issued a heavy document supporting the development of photovoltaics, “Opinions on Further Optimizing the Market Environment for the Merger and Reorganization of Photovoltaic Enterprises” (hereinafter referred to as “Opinions”), and proposed to accelerate the structural adjustment of the photovoltaic industry and promote the healthy development of the industry. To 20...
On the last day of 2014, the Ministry of Industry and Information Technology issued a heavy document supporting the development of photovoltaics, “Opinions on Further Optimizing the Market Environment for the Merger and Reorganization of Photovoltaic Enterprises” (hereinafter referred to as the “Opinions”), and proposed to accelerate the structural adjustment of the photovoltaic industry and promote the healthy development of the industry. By the end of 2017, a number of key PV companies with strong international competitiveness will be formed to support the formation of 15 PV giants.

Photovoltaic industry expert Zhao Yuwen told the reporter of "Daily Economic News" that after fierce market competition, the photovoltaic industry in the next few years will certainly be the share of more than 80% of the photovoltaic oligopoly, and the documents issued by the Ministry of Industry and Information Technology will further accelerate the photovoltaic industry. Industry shuffle.

Future PV giants account for 80% of the share

For China's photovoltaic industry, 2014 is a year of ups and downs. However, the favorable documents issued by the Energy Bureau have also set the tone for the development of the photovoltaic industry in the next few years.

The "Opinions" issued by the Ministry of Industry and Information Technology proposed that by the end of 2017, a number of backbone photovoltaic enterprises with strong international competitiveness will be formed. The output of the top five polysilicon enterprises will account for more than 80% of the country, and the output of the top 10 battery component enterprises will account for more than 70% of the country. To form a number of integrated photovoltaic power generation development and application companies with global vision and leading edge.

In fact, the current production of polysilicon and wafer companies has achieved its goal. The production of polysilicon and wafers by several leading companies such as GCL-Poly and Longji Silicon has exceeded 80%.

In this regard, Chairman of the Board of Directors of GCL-Poly, Zhu Gongshan, said in an interview with reporters that "the future photovoltaic industry will have more than 80% of the market share of several leading PV companies. These leading PV companies will guide the development of the entire PV industry. ”

Zhao Yuwen also said, "In fact, the current leading PV industry has already emerged. Among them, GCL-Poly, Harun Solar, Shunfeng Optoelectronics, Yingli Energy, Hanergy Photovoltaic, and Trina Solar have formed the entire industry chain. It is possible to become an oligarchy in the photovoltaic industry. As the market share of these companies further increases, some enterprises that do not have competitive advantages will face the situation of being eliminated."

Policy support for PV enterprise mergers and acquisitions

The "Opinions" of the Ministry of Industry and Information Technology pointed out that it is necessary to improve the market operation mechanism, give full play to the decisive role of the market in resource allocation, and create a market environment conducive to the merger and reorganization of photovoltaic enterprises. In addition, it is necessary to further reduce barriers to cross-ownership mergers and acquisitions among PV companies, and encourage state-owned enterprises, private enterprises, and foreign-funded enterprises to carry out mergers and acquisitions through mergers and acquisitions and shareholdings.

In addition, the Ministry of Industry and Information Technology also pointed out that it is necessary to guide upstream and downstream enterprises to strengthen cooperation and encourage upstream and downstream enterprises in the PV industry chain to establish long-term and stable cooperative relations and improve the structure of the industrial chain through strategic alliances, signing long-term orders, technical cooperation, and mutual participation. It will focus on promoting deep cooperation between polysilicon enterprises and battery and component companies, upstream manufacturing enterprises and downstream power generation companies. Support key PV companies with good operating conditions and leading technology to implement mergers and acquisitions in upstream and downstream enterprises, improve the structure of the industrial chain, and improve the profitability of the entire industry chain. Encourage key enterprises and related companies in the related industries such as power and chemical industry to implement mergers and acquisitions.

In the process of mergers and acquisitions, the government will give advantages to enterprises such as land and finance, while scientific research institutions, industry organizations, financial and securities institutions cooperate and support through various channels. Among them, in the financial aspect, the banking financial institutions are encouraged to innovate financial products and service methods that are suitable for the needs of photovoltaic enterprises, and support photovoltaic enterprises with high technological content, good development prospects and independent intellectual property rights to develop and expand through mergers and acquisitions. Give full play to the guiding role of relevant banks in the country, encourage commercial banks to improve the M&A loan system, and implement comprehensive credit grants for mergers and acquisitions enterprises, and they can purchase the underlying assets or equity for security. Support commercial banks to improve credit grants for mergers and acquisitions of photovoltaic companies. It also allows qualified PV companies to issue preferred stocks and issue convertible bonds as mergers and acquisitions.

In this regard, Zhao Yuwen told the reporter of "Daily Economic News", "In the new round of PV enterprise competition, enterprises will face the dual pressure of large capital demand and shrinking profits. Some small and medium-sized battery and component enterprises will be reorganized and merged. In particular, under the impact of some leading enterprises with strong financial strength and market share, some small and medium-sized enterprises with insufficient financial strength will experience a rapid decline in market share. The collapse or merger in the competition is an inevitable outcome. ."

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