European Anti-Dumping Probe into Chinese Solar Firms

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The European Commission (E.C.) is to launch its largest ever anti-dumping investigation over allegations that Chinese solar panel firms are importing panels and components into the European market at below cost prices.

The move follows complaints in July from EU ProSun, an industry association representing around 20 solar companies, claiming that Chinese solar firms were unfairly undercutting European firms by deliberately selling solar products at a loss. In 2011, China exported solar panels and their key components worth around €21 billion ($26.9 billion) into the European Union (E.U.). The investigation will take 15 months in total, but it will be possible to start imposing provisional anti-dumping duties within 9 months, depending on the evidence gathered.

The U.S. carried out a similar investigation against Chinese solar firms and imposed severe anti-dumping duties on the Chinese industry earlier this year.

"The European Commission took a big step today to save Europe's green tech sector and broader manufacturing base," said Milan Nitzschke, President of EU ProSun. "Chinese companies are selling solar products in Europe far below their cost of production, with a dumping margin of 60 % to 80%. This means that Chinese solar companies are making enormous losses, but are not bankrupt because they are bankrolled by the state. Such practices have led to over 20 major European solar manufacturers going out of business already in 2012 alone. If China destroys the EU solar industry where labour accounts for less than 10% of production costs, then virtually all European manufacturing sectors and jobs are under threat."

According to E.C. figures, China is the world's largest producer of solar panels with approximately 65% of all panels produced there. The E.U. is China's main export market and accounts for around 80% of its sales.

Chinese solar product makers have hit back at the allegations. One of the largest players, Trina Solar Limited (NYSE:TSL) (Changzhou, China), claimed that the allegations are 'unfounded'.

"Trina Solar products are neither dumped nor subsidised," stated Chairman and CEO, Jifan Gao. "They are produced and sold competitively on the European market. We believe the trade investigation will reveal that Trina Solar competes fairly with its competitors in the European Union. We are cooperating with the European Commission to ensure it receives all required information to arrive at a balanced and fair conclusion."

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