More Green Failure: Chinese Solar Industry On the Brink!

Russ Steele

The Australian Herald Sun has the details:

Li Fei, the owner of Chengxing Solar Company in Jinhua, Zhejiang Province, committed suicide by jumping off a building, alarming the debt-ridden photovoltaic industry, reported First Financial Daily in Shanghai.

Li ended his life after Chengxing was unable to repay a 20 million yuan (US$3.15 million) loan taken by another photovoltaic company called Zhongxi, for which Chengxing was the guarantor.

The incident was a sign of the imminent collapse facing the Chinese photovoltaic industry, because of its lack of liquidity and mounting debts, noted First Financial Daily…

Most companies in the industry were burdened with high debts, according to the newspaper. For example, Suntech Energy reported a debt of US$2.26 billion in the first quarter of this year, the same as the last quarter of last year, while Trina Solar’s debt grew 9.7% to US$1.13 billion.

China is a major supplier of solar panels for mandated California solar projects.  What happenes if the industry collapses?  

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

One Response to More Green Failure: Chinese Solar Industry On the Brink!

  1. Arthur M. Day. says:

    SinoCalifornia collapse, of course.

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