Korea Solar Maker Qcells to Shut Down Production in China

(Bloomberg) -- A solar manufacturing unit of the South Korean conglomerate Hanwha Solutions Corp. will terminate operations in China as the company expands its US presence, according to filings. 

Hanwha Qcells, South Korea’s largest solar producer, will permanently close its Qidong factory in China on June 30, according to a regulatory filing on Thursday. The plant, with an annual output of 2.1 gigawatts of solar cells and 2.3 gigawatts of modules, supplied components to Europe, Japan and South Korea, according to a company spokesperson.

Hanwha Qcells is pulling its operations out of China as it focuses on the US, where it has committed to spend billions of dollars to establish a fully integrated supply chain. The company is also one of the beneficiaries of President Joe Biden’s landmark climate law, the Inflation Reduction Act, which offers tax credits for new manufacturing capacity in the country. 

The shutdown comes as China’s world-dominating solar industry grapples with overcapacity and growing competition drives down prices. Companies have seen their profits dwindle, with some being forced to halt operations to reduce costs.

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