Energy company targets emerging markets

Updated: 2015-05-22 08:06

By Zheng Jinran and Pei Pei(China Daily Europe)

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EU penalties have solar panel maker looking elsewhere in Europe for deals

The world's largest solar manufacturing company, Yingli Green Energy Holding Co Ltd, says it is lining up more deals with countries in Central and Eastern Europe.

"These countries have a growing need for solar energy that will give companies like ours more business opportunities," says Yang Ming, the company's deputy manager.

The company sells solar panels, cells and wafers to European countries such as Germany, a big market for other Chinese solar companies as well.

The output of solar panels Yingli sold exceeded 700 megawatts in 2012, before the European Union imposed provisional anti-dumping duties, as a result of which output fell to 500 mW last year. Sales may continue to shrink this year, Yang says.

In response, the company has shifted its focus to emerging markets, including the Central and Eastern European countries.

"We have agreed to work with a company in Poland in several solar projects with total output of 30 mW," Yang says.

Construction can begin once the Polish government announces a detailed policy on solar energy, he says. In addition, the company is looking at making solar panels in the Czech Republic and Turkey, he says.

Representatives of several companies from Serbia visited Yingli's headquarters in Baoding, Hebei province, on May 16.

The following day, Yingli started talks with at least 10 companies from 16 countries in Central and Eastern Europe about solar projects and related services in Langfang, Hebei province. Discussions will continue, Yang says.

He was talking after the China-Central and Eastern Europe SME Cooperation and Development Fair, which was held in Langfang over three days to May 19.

More than 150 small and medium-sized companies from 16 Central and Eastern European countries, including the Czech Republic, Hungary, Poland, Serbia and Slovakia, and more than 220 companies attended the trade fair.

"It gave us a great chance to exchange information on business and open a platform to pursue cooperation with Yingli and other companies in the province as well as in the country," says Sanja Vasic, head of the Belgrade Chamber of Commerce.

Sixteen companies from Serbia in agricultural, industrial and entertainment sectors attended the three-day trade fair and were able to talk to many Chinese companies.

Serbia is in the process of privatizing 502 state-owned enterprises, and this offers foreign companies business opportunities, Vasic says.

The companies visiting Hebei were looking to sign agreements, she says, adding that Serbia exported goods worth about $15 million (13.5 million euros) to China last year and imported goods worth $1.5 billion.

Yang Xiuquan, a manager of a commerce company in the city of Tangshan, says he wants to import advanced technology and equipment for environmental protection so his company can comply with provincial government demands to reduce air pollution.

Jacek Skwira, manager of Ciech Sarzyna of Poland, says that his company attracted more investment from Hebei for further development.

"It's like matchmaking," says Tian Guoli of Bank of China, who was at the trade fair. The bank will grant loans of at least $20 billion this year to support projects in countries and regions of China's Belt and Road Initiative, which covers many countries in Central and Eastern Europe.

It is a good time for companies from both Hebei and Central and Eastern European countries to explore their markets, says Zhou Benshun, Party chief of Hebei province.

The province is well placed geographically, neighboring Beijing and Tianjin, one of the biggest ports in North China, Zhou says.

Zhang Yu contributed to this story.

Contact the writers through zhengjinran@chinadaily.com.cn

(China Daily European Weekly 05/22/2015 page20)