By Park Si-soo
Korean solar panel makers are showing signs of recovery thanks to rising global demand for their products, especially from China, brightening prospects for a recovery from their prolonged business slump.
Hanwha Group is trying to take advantage of the momentum in expanding its presence in China, Europe and Southeast Asia. Hyundai Heavy Industries expects it will be able to make up for its massive losses in the shipbuilding business with climbing revenue from its solar panel business.
OCI, the world's second-biggest maker of poly silicon, a crucial material for solar panels, reported a 93 percent hike in operating profit in the second quarter from a year ago.
These companies have wrestled with money-losing operations in the solar panel business for years as a result of sagging demand in their key markets that could be attributable to stable oil prices, coupled with Chinese rivals' ferocious expansion with low-priced products.
Yet the situation has turned favorable recently. A growing number of countries have adopted policies to increase investment in eco-friendly energy sources such as solar energy.
In addition, the United States set new anti-dumping duties on solar panels imported from China last month, putting the brakes, through temporarily, on Chinese manufacturers' fast expansion, while giving other rival companies in Korea and other countries an opportunity to grow in the U.S. market.
Late last month, the U.S. Commerce Department placed anti-dumping duties as high as 165 percent on solar panels and cells from China after a preliminary finding that the products were being sold too cheaply in the U.S. market.
Chinese companies supplied about a third of the panels installed in the U.S. in 2013, according to a study by GTM Research in Boston.
The U.S. Commerce Department will make its final decision by Dec. 15. The U.S. International Trade Commission is due to make a decision on whether the imports pose or threaten injury to U.S. producers by Jan. 29.
Analysts say there is a big growth potential in China.
China, which surpassed Germany to become the biggest solar market last year, may install solar panels capable of generating 14-gigawatts of electricity this year, according to Bloomberg. The country of 1.4 million people added a record 12 gigawatts of solar power in 2013, compared with 3.6 gigawatts a year ago, it reported.
OCI seems to be flexing its corporate muscles in order not to miss the hard-won opportunity.
"Considering situations, China is expected to trigger growth momentum in the world's solar panel business in the second half of the year," said OCI President Lee Woo-hyun during an investor relations meeting in Seoul, July 23.
"China made lower-than-expected investment in solar panels in the first half of the year due to administrative red tape. That means it will make bigger investments during the second half," he added.
Korean solar panel makers are showing signs of recovery thanks to rising global demand for their products, especially from China, brightening prospects for a recovery from their prolonged business slump.
Hanwha Group is trying to take advantage of the momentum in expanding its presence in China, Europe and Southeast Asia. Hyundai Heavy Industries expects it will be able to make up for its massive losses in the shipbuilding business with climbing revenue from its solar panel business.
OCI, the world's second-biggest maker of poly silicon, a crucial material for solar panels, reported a 93 percent hike in operating profit in the second quarter from a year ago.
These companies have wrestled with money-losing operations in the solar panel business for years as a result of sagging demand in their key markets that could be attributable to stable oil prices, coupled with Chinese rivals' ferocious expansion with low-priced products.
Yet the situation has turned favorable recently. A growing number of countries have adopted policies to increase investment in eco-friendly energy sources such as solar energy.
In addition, the United States set new anti-dumping duties on solar panels imported from China last month, putting the brakes, through temporarily, on Chinese manufacturers' fast expansion, while giving other rival companies in Korea and other countries an opportunity to grow in the U.S. market.
Late last month, the U.S. Commerce Department placed anti-dumping duties as high as 165 percent on solar panels and cells from China after a preliminary finding that the products were being sold too cheaply in the U.S. market.
Chinese companies supplied about a third of the panels installed in the U.S. in 2013, according to a study by GTM Research in Boston.
The U.S. Commerce Department will make its final decision by Dec. 15. The U.S. International Trade Commission is due to make a decision on whether the imports pose or threaten injury to U.S. producers by Jan. 29.
Analysts say there is a big growth potential in China.
China, which surpassed Germany to become the biggest solar market last year, may install solar panels capable of generating 14-gigawatts of electricity this year, according to Bloomberg. The country of 1.4 million people added a record 12 gigawatts of solar power in 2013, compared with 3.6 gigawatts a year ago, it reported.
OCI seems to be flexing its corporate muscles in order not to miss the hard-won opportunity.
"Considering situations, China is expected to trigger growth momentum in the world's solar panel business in the second half of the year," said OCI President Lee Woo-hyun during an investor relations meeting in Seoul, July 23.
"China made lower-than-expected investment in solar panels in the first half of the year due to administrative red tape. That means it will make bigger investments during the second half," he added.
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