Saturday, January 29, 2011

China's New Rules For Solar Polysilicon Factories Expected To Force Consolidation

China's Ministry of Industry and Information Technology has announced new policies for solar polysilicon plants in the country.

Under the new rules, factories must be capable of producing more than 3,000 metric tons of polysilicon annually and meet specific standards for efficiency, financing and environmental impact, Bloomberg reports.

Existing plants must also comply with the rules, and those that do not are expected to be shut down by the end of the year.

Johnny Lau, an analyst at Hong Kong-based SW Kingsway Capital Holdings Ltd., told Bloomberg that the new policies are expected to benefit large polysilicon producers (e.g., GCL Poly) by driving out rival companies that are less energy-efficient. Industry consolidation is also predicted as a result of the rules.

SOURCE: Bloomberg

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