The rise-and-fall analysis of Suntech by iSuppli

IHS has analyzed the rise and fall of solar PV module supplier Suntech Power. IHS says Suntech Power’s epic plunge from solar module dominance to bankruptcy comes as the result of misplaced investments, a misguided pricing strategy, antidumping action in the United States and a potential new willingness by the Chinese government and banking system to cast off detrimental manufacturers. Here the release by IHS on the rise and fall of Suntech: China’s Suntech on Wednesday said its main operating subsidiary, Wuxi Suntech, had been pushed into bankruptcy by eight Chinese banks. This represents a major fall from grace for Suntech, which as recently as 2011 was the world’s largest supplier of photovoltaic (PV) solar modules.
“The seeds of Suntech’s fall were planted during its rise to market leadership,” said Mike Sheppard, senior PV analyst with IHS. “In 2009, at a time when the solar market was reeling from bloated inventories and cash-flow concerns, Suntech was one of the few companies willing to brave the uncertain business conditions and invest aggressively in manufacturing capacity. This bold strategy resulted in Suntech becoming the world’s largest PV module supplier in 2011. However, in retrospect, the company failed to invest in all the correct areas, specifically ...