CSI Solar to relocate production capacity under tariff threat

CSI Solar to relocate production capacity under tariff threat

Chinese solar companies are facing a squeeze on their operations in Southeast Asia after Washington threatened new duties as high as 3,521% on solar imports.

CSI Solar Co’s first-quarter net income fell 92% from a year earlier to US$6.5 million. (Unsplash pic)
SHANGHAI:
CSI Solar Co, one of China’s top solar manufacturers, said it will maximise exports from its Southeast Asian production bases before punitive US tariffs kick in, while also preparing to move capacity to other regions facing lower duties.

The affiliate of Nasdaq-listed Canadian Solar Inc will also “strive to obtain” tariff exemptions or reductions for certain products, according to a filing to the Shanghai Stock Exchange yesterday.

“The company faces ‘considerable challenges’ to its finances and operations due to global trade tensions and a domestic price war that has gouged the Chinese solar industry,” it said.

“CSI’s first-quarter net income fell 92% from a year earlier to ¥47.3 million (US$6.5 million),” it said.

Other measures the company plans to take include negotiating with major clients and suppliers to share costs, and moving production capacity to “regions with lower tariff costs”. It did not provide details.

Besides the new blanket tariffs announced by US President Donald Trump, Chinese solar companies are also facing a squeeze on their operations in Southeast Asia after Washington threatened new duties as high as 3,521% on solar imports from Cambodia, Vietnam, Malaysia and Thailand.

The duties hinge on separate action by the US International Trade Commission, which is set to decide in about a month whether American producers are being harmed or are threatened by the imports.

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