Solar Glut Hurts Chinese Firms

The combination of solar module oversupply, preliminary U.S. antidumping tariffs, a European antidumping investigation, and falling government support for solar power in Europe is leading to output reductions and financial problems at leading Chinese solar firms. Suntech Power will slash solar-cell capacity by 25%, to 1.8 GW, at its Wuxi facility, a move that will affect about 1,500 workers. Most will be offered jobs at other plants, but some will face severance. Meanwhile, LDK Solar told analysts last week that, faced with $3.3 billion in debt, it is in talks with its bank and local governments for continued support.