SolarWorld: U.S. Agency Report Highlights Imports’ Serious Injury to Domestic Manufacturing Industry

Despite growing domestic demand, nearly 30 U.S. factories shutter

HILLSBORO, Ore.–(BUSINESS WIRE)–Nearly 30 U.S. crystalline-silicon solar technology manufacturing sites
have closed down since 2012, a period in which imports of such products
surged by nearly five-fold, according to a staff report by the U.S.
International Trade Commission (ITC).

The ITC issued the report ahead of its hearing on Aug. 15 that will
examine whether solar imports have caused serious injury to the domestic
manufacturing industry. SolarWorld Americas Inc., the largest U.S.
producer, and Suniva Inc. are co-petitioners in a so-called “safeguards
case,” which seeks relief from the import surge. The pre-hearing report
was based on responses to ITC questionnaires from purchasers, importers
and producers. According to SolarWorld, the report findings paint a
picture of domestic producers suffering serious financial distress even
as U.S. demand robustly grew, as a result of the massive influx in solar
imports from various global producers.

Highlights from the report:

• U.S. module assemblers suffered net losses exceeding $1 billion over a
  five-year period. “The majority of U.S. module producers reported
  operating losses throughout all or most of the period,” the report
  says.
• “The level of R&D expenses assigned to cell operations declined
  through the period.” Ten of 13 U.S. producers surveyed reported
  imports had undermined investment; nine said the same about growth and
  development.
• “Even as U.S. demand for [solar] products increased from 2012 to 2016,
  foreign suppliers, primarily Malaysia, China and Korea, began
  capturing a larger share of the U.S. market.”
• Module prices dropped by about a third in the second half of 2016,
  during a year when all imports increased by 50 percent from the
  previous year.
• U.S. solar manufacturers rated imports as “an extremely important
  cause of injury to U.S. producers,” making it the clear leading factor
  among a roster of potential causes of harm to the U.S. producers.
• According to the report, 28 of 34 Chinese producers said they do not
  compete with imports in their home market. The Chinese market,
  according to SolarWorld, is closed to imports.

“We appreciate the hard work that the ITC staff has invested in this
comprehensive report,” said Juergen Stein, president of SolarWorld
Americas. “We are confident that the facts support an affirmative
finding by the ITC and that this finding will finally lead to a
restoration of fair competition in the U.S. solar marketplace.”

The ITC is scheduled to vote Sept. 22 on whether imports have caused
serious injury, or threat of serious injury, to the domestic industry.
If at least two of the current four Commissioners vote in the
affirmative, the case moves on to a remedy phase, in which the ITC has
until Nov. 13 to make a recommendation to the President.

About SolarWorld REAL VALUE: SolarWorld Americas Inc., the
largest U.S. crystalline-silicon solar manufacturer for more than 42
years, produces and sells high-tech solar power solutions and, in doing
so, contributes to a cleaner energy supply throughout the Americas. The
company maintains 430 megawatts of annual capacity to produce solar
cells and 550 MW of capacity to manufacture solar modules. The company’s
brand stands for a proven track record of quality and reliability, and
SolarWorld is the only producer whose industrial lineage has outlived
its products’ 25- and 30-year performance guarantees. SolarWorld upholds
high social standards and commits itself to resource- and
energy-efficient production. With its program Solar2World, the company
supports the expansion of solar power in developing countries in Latin
America. Connect with SolarWorld on Facebook,
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LinkedIn,
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and www.solarworld.com.

Contacts

SolarWorld Americas Inc.
Ben Santarris, 503-693-5189
Head of
Corporate Communications
Mobile: 503-927-9858
[email protected]