Summary October 4, the US and Japan plus Australia and other 12 countries ended the "Trans-Pacific Strategic Economic Partnership Agreement" (hereinafter referred to as "TPP") ministerial negotiations for TPP trade agreement. This agreement may make it into...
On October 4, the 12 countries including the United States, Japan, Canada and Australia ended the ministerial-level negotiations on the Trans-Pacific Strategic Economic Partnership Agreement (hereinafter referred to as “TPP†and reached a TPP trade agreement. This agreement may promote economic growth in member countries, accelerate mutual innovation, reduce environmental pollution, and invest in trade more convenient. The photovoltaic industry, as a highly globalized decade of emerging industries, will certainly affect. After interviewing a number of PV industry veterans tonight, the reporter found that after the implementation of the TPP clause, the layout of some enterprises in Asia and the Americas will gradually expand, and the level of corporate management and factory governance of domestic companies will be more international.
Malaysia and Vietnam may increase in construction
Among the 12 countries participating in the TPP negotiations, Asian countries such as Malaysia, Singapore and Vietnam are all listed.
A senior executive of Zhongli Technology told this reporter that the phenomenon of production from Chinese capital, betting on Vietnam and Malaysia is increasing. Before the TPP agreement was reached, most of the companies in other regions of Asia were placed to avoid overseas “double oppositionâ€. In the short term, the photovoltaic products of these bases will be radiated to emerging photovoltaic countries such as Thailand and India, and in the long run they can be exported to the US and Europe.
In Vietnam, there are already Bowei Group, Vietnam PV and other enterprises. Among them, Vietnam PV has a scale of 1.6G watts and is under construction of 600 MW. It is located in Yunzhong Industrial Zone, Yue'an County, Beijiang Province, Vietnam, and covers an area of ​​about 100 acres.
From Vietnam, south through the Gulf of Thailand, Malaysia is in sight. The enterprises that have been built or are in trial operation here include China Light and Power, Jingke Energy and Trina Solar. Among them, Trina Solar has teamed up with local partners in Malaysia to jointly operate a 400 MW component plant, which will gradually expand to 500 MW in the future. Jinko Energy's factory is located in the Penang area, which has the world's cultural heritage "George City". After the production, the annual production capacity of battery chips and modules will be 500 MW and 450 MW respectively.
Establishing a production plant is one of the ways in which photovoltaic companies can be placed in Malaysia. On September 10 this year, GCL Integrated signed a strategic cooperation memorandum with the Malaysian National Construction Industry Development Agency to jointly promote the “Smart City†project (including the construction of 800 sets of smart farms and photovoltaic building integration). And this approach can also expand the local business for the company.
Another high-level PV company engaged in overseas market business told the China Business News that the manufacturing advantages of Vietnam and Malaysia are emerging.
Local companies are hard to match domestic enterprises in terms of production management, manufacturing, trade, etc. More advantages are reflected in manufacturing costs. "I will give you an analogy. The labor cost in Vietnam is similar to that in domestic third- and fourth-tier cities, which is equivalent to the first line. About 70% of the city, the wages of grassroots workers are about 1,800 yuan per month, and the labor cost is expected to account for 10% of the total production cost. Although there are not many funds saved, it is very good for the photovoltaic industry in the bottom of the valley. Advantage."
He said that the company's normal gross profit margin is less than 10%. In terms of raw material prices and production plant construction, the cost gap between China and Vietnam is very small. As long as the company can save a little money, the competitive advantage is very big. This is everyone's choice. One of the core factors in building a plant in other parts of Asia.
“In Southeast Asia, the cost of land acquisition may be less than that of the domestic market. Some places provide land for enterprises free of charge in order to solve employment. In addition, domestically, some semi-idle or idle equipment can be transported to new production bases. Enterprises cannot fully invest in Vietnam and Malaysia, but in fact they are moving home."
In his eyes, the goods of the Yuema factory mainly radiate to other Asian countries. If India implements anti-dumping sanctions on PV modules in China in the future, the products of the Yuema factory will have strong competitiveness.
In the short term, the impact of TPP on China's PV companies' exports is not great, but such impacts may be strengthened in the future. China PV companies are now shipping to the United States, subject to the "double-reverse" sanctions imposed by the United States on China, and many products are transshipped in third countries; the US market is extremely competitive, and if the United States and other places achieve zero tariffs with the United States, Since then, under the multiple policies of cost advantage and tariff reduction, the origin of China's exports to the United States may change.
The Mexican market has not yet started
Among the 12 countries involved in the TPP agreement, the name of Mexico has appeared. The origin of this Mayan culture and the Latin American economic power, which is second only to Brazil in terms of national production, cannot yet become one of the production base options of Chinese companies. Its actual distance from Asia is really too far.
If you want to build a corresponding component production base, you must have glass, aluminum profiles and other accessories around, but Mexico has nowhere to look. Even if Chinese companies are willing to go there to build factories, they will not act from the perspective of cost and supporting facilities. Unless some large PV companies take the lead in participating in or developing industrial parks, it may improve Mexico's new energy investment environment. "Although the United States also has polysilicon production plants, but from the United States, the cost of transporting polycrystalline silicon as a raw material to Mexico is worthwhile, and it is also one of the considerations for enterprises to invest and build factories."
However, he does not deny that Mexico has potential for development. This is reflected in three aspects: Mexico with the reputation of “land bridgeâ€, the United States to the north, Guatemala and Belize to the south, and the Caribbean and Gulf of Mexico to the east. Also connected to the Pacific Ocean. In this way, it can not only meet the needs of the North American market with great potential, but also radiate a variety of sunny South American regions, where it is very convenient; secondly, there are also G-level PV needs in Mexico. Once the conditions are mature, it will inevitably become a major investment town. Third, Mexico is now undergoing a power system reform. Local power generation companies can directly sell electricity to large users, which is what domestic calls “direct purchasesâ€, such as Dongfang Risheng, Liansheng New Energy, and Jingke Energy. It is also preparing (or starting) to sell components and manage power stations.
The reporter also noted that Japan’s status in the TPP agreement has also been repeatedly mentioned. At present, Japan ranks among the top three PV installations in the world. Will it be affected by the TPP agreement, and will reduce the procurement of PV modules in China in the future?
Many people from the industry say that the TPP's purchase of Japanese PV may not be large. Although the Japanese market has undergone tremendous changes in recent years, its installations have exploded and preferential policies have emerged in an endless stream. However, from an objective point of view, Japan’s land area is very limited. Whether it is installation or subsidy policy, the rate of decline is now faster. Installation saturation speed is much faster than the market that India is preparing to develop.
However, due to the high labor and manufacturing costs in Japan, it is not possible to be a major PV production base. Although most Chinese companies export photovoltaic products to Japan, they do not have the obstacles of high tariffs. "Japan's acceptance of Chinese products has always been very poor. Companies are exporting products to Japan through local big traders such as Mitsubishi Corporation and Toyota Tsusho. So even after Japan has reached a zero-tariff agreement with other countries. The impact is not large. With the decline in local installations in the later period, the heat is expected to decrease." A management of Qihui Sun also said that in the future, Chinese companies will gradually increase their production plants overseas, and legal and financial services for Chinese companies. , internal corporate governance, production management, etc. will be promoted.
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