Today there Ikunori from the photovoltaic industry news, more bad news the struggling LDK Solar (LDK.N: Quote), while the two western solar panel manufacturers in the Chinese market has made important new progress. At the same time, Canadian Solar (CSIQ.O: Quote) good news from the company to raise funds for a new solar power projects in Canada.
Let's start with the LDK message, this is the worst news in the news today. LDK is one of the relatively poor performance of the industry enterprises. The solar panel industry is currently facing huge oversupply situation. LDK bad financial position to make it to the brink of bankruptcy, in fact most of the time this year, the company is in the background by the local state-owned enterprises to take over the painful process.
The latest financial results, LDK's nightmare continues. The quarter the company recorded a huge loss of $ 137 million, although this has previous quarter loss of $ 253 million improvement. Again in the third quarter, the company laid off 2,600 people, means that the company is currently serving officers is just the beginning of this year, half of LDK.
But a huge debt means that, if the government does not bailout, LDK is difficult to survive. The rescue plan is likely to be finalized in the first quarter of next year before. LDK Solar stock investors dumped their earnings reports released, the stock fell 10%, many investors might think, in the background of the state-owned enterprises to take over after LDK Solar's stock may be worthless.
In, Western companies of First Solar FSLR.N and the Sun Power <SPWR.O> announced new projects in China. Through the construction of a new large-scale solar power plants, the Chinese government plans to focus on the support of its solar panel makers. FirstSolar will provide 2 MW of thin-film photovoltaic panels as a demonstration project in Xinjiang. Sun Power said it will form a joint venture to sell solar panels to the Chinese market.
Concerned about First Solar, Sun the Power and other Western companies in China, how performance will be very interesting. These enterprises will face fierce competition for Trina Solar and other local enterprises. Washington and the European Union's recent action to punish Chinese solar cell makers, because of their unfair support from the Chinese government.
Therefore, we are likely to see the Chinese government fired back, FirstSolar and SunPower foreign enterprises in China can not receive large orders. In my opinion, we are likely to see the government favoring Chinese solar panel makers in these new projects, but Western companies may be able to take a slice.
Finally, let us quickly take a look at Canadian Solar. The company is a Canadian project to get $ 139 million financing from Deutsche Bank. Canadian Solar seems to want to show that, from real commercial banks to obtain funds for their projects, rather than relying on the state-owned banks in China.
Case, the loan project construction, short-term loans. Once completed, the power plant will be immediately sold to long-term holder, which also means that a relatively small risk of Deutsche Bank. But see commercial banks interested in such a project is still very pleased, This shows that there is still a long-term potential of the industry. Sentence: LDK background of the state-owned enterprises to take over is still in progress, but is still very bad earnings, strengthen the solar industry in China plan or benefit, foreign solar panel.