Phono Solar& GCL Joined Hands to Expand the Domestic Power Plant Market

Phono Solar Technology Co., Ltd, affiliated to Jiangsu SUMEC Group, signed a strategic partnership agreement with Golden Concord Holdings Limited (hereafter called “GCL”) in Nanjing, China on May 18. The signing of this agreement indicated that the both parties would cooperate with each other in terms of supply chains, industrial chains and photovoltaic plants.

May 18 was just the day when America released the preliminary determination of anti-dumping investigation on imported solar cell products originated from China, and the President of GCL, ZHU Gongshan, said, the association of the two strong enterprises at this time had a very important strategic significance.

The US Department of Commerce released the preliminary determination of anti-dumping investigation on imported solar cell products originated from China, which ruled that a temporary anti-dumping rate of 31.14%-249.96% would be applicable to involved Chinese enterprises. This was the highest anti-dumping rate imposed by America upon new energy products exported from China to America. This cooperation gave a clear signal – in facing severe market challenges, domestic photovoltaic enterprises move from “Competition” to “co-opetition”.

The president of Phono Solar, CAI Jibo, said, both this cooperation with GCL and the previous cooperation with Suntech aimed to develop photovoltaic plant projects hand in hand. It’s relatively easy to understand the cooperation with GCL, because GCL is a silicon supplier, and Phono Solar is a purchaser, they cooperate with each other to expand the market as a matter of course. However, in the industry, many people couldn’t understand the cooperation with Wuxi Suntech. Actually, Phono Solar has advantages that no-one else has – it’s a subsidiary of the state-owned enterprise China Machinery Industry Corporation, so it has unique advantages in expanding the market and getting financing at home; besides, China Machinery Industry Corporation is a Top-500 enterprise in the world, which has a strong brand advantage in expanding overseas markets. Furthermore, SUMEC has been engaged in export trade for more than 30 years with a solid overseas foundation and strong adaptability to changes; in the last year, under the sluggish economic environment where industry leaders had a loss of USD 500 Million or even USD 1 Billion Phono Solar produced a profit.

“In the hard times of market, we need to pull through hand in hand. This is a market large enough, and no one has the ability to enjoy it alone. Therefore, even dominant enterprises prefer co-opetition to competition, and we should have a thinking beyond the traditional business”, he said.

ZHU Gongshan also said, the release of the preliminary determination would make the industry suffer a setback in the development, but he believed that there must be opportunities in threats in any time; every photovoltaic enterprise and our every photovoltaic material supplier will cope with it positively; photovoltaic enterprises will cope with the situation by persisting in advancing technology to achieve the improvement in efficiency and reduction in cost through technological innovation, and achieve the improvement in management through reconstruction of business models.

The signing of this strategic partnership agreement is another important cooperative action within the industry after the strategic cooperation between Phono Solar and Suntech Power at the beginning of May; under the current severe external environment, full integration of excellent industrial recourses to achieve association between strong enterprises and complementary advantages will play a positive role in promoting the sustainable and healthy development of new energy business of enterprises and the new energy industry in China.


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