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Solar company eyes future as solution provider

By Xie Yu (chinadaily.com.cn) Updated: 2014-07-14 17:01

Changing from a pure manufacturer to a solution provider focused on manufacturing is seen as the future of the solar business sector by SUMEC Group Corporation, a subsidiary of Global Fortune 500 company China National Machinery Industry Corporation.

The company signed a cooperation agreement in mid-June during Premier Li Keqiang's visit to Greece that will see SUMEC develop and operate a solar station in the country, jointly with the French EDF Group.

China's solar companies have been undergoing painful industry consolidation in recent years due to a glut in supply and overseas trade barriers. But some are seeing business growth since the second half of last year as the domestic market warms up.

"The declining cost, growing demand and supportive policies from the authority are leading to the recovery of the solar industry in China and we are to seize the opportunities both in and outside China, by offering systematic solar solutions to clients," said Cai Jibo, president of the SUMEC Group.

The gross margin for pure solar panel manufacturing is below 10 percent nowadays, however, developing solar plants and systematic power solutions can push up the gross margin rate to 30 percent, he said.

By stretching to sectors with higher profit margins, the solar business of SUMEC Group harvested 1.7 billion yuan ($27.4 million) by revenue in 2013, 25 percent up year-on-year, reversing the macro industry scenario. The company expects sales to grow by more than 40 percent year-on-year in 2014.

Emerging markets including China contributed 71 percent of the solar installation globally in 2013, while Europe took only 28 percent, according to UBS Securities.

China earlier set a 2014 installation target of 14 GW, with 8 GW from distribution systems and 6 GW from large-size solar stations.

Solar company eyes future as solution provider

Solar company eyes future as solution provider

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