Over capacity and financial crisis lead oversuply and market contraction Too many new comers crowd into market
M&A----- rapid expansion across value chain in order to survive DOWNSTREAM UPSTREAM Key Strategic Initiatives A vertically integrated presence to capture profits across value chain An increased focus on market access Capital & Energy Technology Labour
Ability to secure low cost and good quality inputs ( Polysilicon, Wafer, Cell)
Ability to get market access – Increase capacity utilization
The PV marekt is stable and getting better PV Supply Chain Margin Top Companies Revenues (US$Mil) Margin is getting stable But some companies were not able to take advantage of the rapid decline in polysilicon spot prices as they were struck in long-term, fixed price contracts Revenues Rebound18% in Q2’09 to $4.65B. The cell/module suppliers are growing faster than the polysilicon suppliers, as polysilicon prices fall faster than cell/module prices Source: YMR PV Supply Chain Health Report and public statement released by listed companies.
Major drivers in Solar energy Theese major drivers affect each other and stimulate the industry