Yingli Solar has entered a new agreement with American chemical supplies company, DuPont co. This new deal is a new dimension in the strategic growth of the Chinese manufacturer of solar panels and accessories. Yingli hopes that this deal enables the company to consolidate further the market hold that has been witnessed over the last couple of years.
DuPont Co. is arguably the most valuable chemical supplies manufacturer in the United States and well placed in providing the materials needed by YIngli. The deal is valued at a conservative $100 million and will cover a set of materials from photovoltaic metalization pastes to protective backsheet films.
Going by the demand for their products, DuPont expects that by 2014, sales of their materials to photovoltaic companies will hit a high of $2 billion. To put a perspective of the tremendous growth that this figure indicates, one only has to consider that the company was only making $1.4 from the PV sector in 2011.
The commitment that DuPont has shown in exerting considerable effort and capital in the provision of green energy materials has been decidedly empathic over the last couple of years. On February 1st 2012, the company entered into a similar deal with Suntech Solar, the world’s largest manufacturer of solar PV modules. However, the Suntech deal focuses on technology advancements as well as supply chain cost reductions.
The markets reacted positively on the release of the news. Yingli’s USA depositary shares rose by a substantial 3.8% in after hours trading. DuPont also reported an increase of share prices by a modest 23 cents at the close of trade on 13th February. The real worth of the deal is likely to be seen in the coming days and weeks.
Yingli is a competitive company based in Baoding,China but has over 10 sales offices worldwide with a total workforce of over 6,000 employees. Their brand catalog includes both PV raw materials as well as end products. Yingli manufactures and ships solar ingots, PV modules and PV modules. The company is one of the largest vertically integrated manufacturers of solar PV modules. Unlike most of the competition though, the company does not develop solar projects.
According to PVinsights, an authority in the green energy sector, Yingli had jumped to the No. 3 position in the world counting the number of PV module shipments by the end of 2011. The market research data also indicated that going by quarter on quarter growth, Yingli held the top position in the year.
Yingli solar has a large market share in Europe as well as in Northern America and Asia. It is the largest supplier in California, the largest solar market in the United States. The company has 27% of the market, compared to just 10% that belongs to Suntech, the leading global supplier. This tremendous growth has been witnessed in particular over the last couple of years and every indication is that it won’t slow down in the future.
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