Europe Probes 'Cheap' Chinese Solar Glass

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The European Commission (E.C.) has launched an investigation into allegations that Chinese solar glass makers have been selling solar glass in Europe at 'below cost' in order to win market share.

The anti-subsidy probe is based on a 'substantiated' claim from EU ProSun Glass, which claims solar glass from China is being subsidised in China and then sold in the European Union (E.U.) at prices below market value, which it claimed "is causing material injury to the E.U. solar glass industry".

Solar glass is a special glass used mainly, but not exclusively, for the production of solar panels. The E.C. said it is an essential component not just of solar panels, but of many solar energy products. The European solar glass market is estimated to be worth under €200 million ($264 million).

"The Commission is legally obliged to open an anti-subsidy investigation when it receives a duly substantiated complaint from E.U. producers which provides prima facie evidence that exporting producers from one or more countries outside the E.U. are subsidising a product which is then sold on to the E.U. market and causing material injury to the E.U. industry," the Commission stated.

"EU ProSun Glass, an ad hoc association representing European solar glass manufacturers, lodged just such an anti-subsidy complaint on 14 March 2013 in which it argues that the Chinese exporting producers of solar glass have benefited from a number of subsidies granted by the Government of China. EU ProSun Glass's collective output represents considerably more than the 25% of Union production required by law."

This is the second major E.C. investigation into the Chinese solar power sector. A separate anti-dumping investigation against Chinese firms was launched in September last year following complaints from EU ProSun -- which is not related to EU ProSun Glass . EU ProSun is an industry association representing around 20 solar companies, and it has prompted the E.C. into launching its largest ever anti-dumping investigation over allegations that Chinese solar panel firms were dumping solar panels and components into the European market at below cost prices. For additional information, see September 12, 2012, article - European Anti-Dumping Probe into Chinese Solar Firms.

China is the world's largest producer of solar panels. Approximately 65% of all solar panels are produced in China and the European Union is China's main export market for solar panels, accounting for around 80% of all Chinese export sales.

With the solar glass allegations, the E.C found enough evidence to launch the investigation, including:

- possible subsidies benefiting the exporting producers in China;

- injury suffered by the Union industry; and

- a possible causal link between the subsidised imports and the injury suffered by the Union industry.

The investigation may take 13 months but duties could be levied within nine months, according to the E.C.

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