The domestic solar industry is facing "stormy eve". This is because the pros and cons of the US are tightly confronted with trade sanctions against imported solar companies as the US International Trade Commission (ITC) reveals the results of its anti-dumping investigation. Major exporting companies such as Hanwha Chemical, LG Electronics, and Hyundai Heavy Industries, are looking for countermeasures against the worst.

According to the solar industry on September 19, the US ITC will decide on the anti-dumping duty division by judging whether imported solar cells and photovoltaic modules imported from Korea, China, etc. damage the domestic industry.

The survey has been made at the request of US solar manufacturer Suniva. In April, Suniva claimed that South Korea, China and Malayasan solar cell modules were being imported and sold at low prices, causing US companies to go bankrupt. US President Donald Trump will decide whether to implement the anti-dumping policy within 30 days of receipt of the recommendation once the ITC decision is made.

Korean companies that directly export solar cell modules to the US include Hanwha Chemical, LG Electronics, and Hyundai Heavy Industries Green Energy. Shinseong ENG is supplying products via Mexico. It is unlikely to be significantly affected by the decision. OCI, which mainly produces solar photovoltaic materials, is also indirectly affected. It is because there are module factories in the US and most of the customers who buy polysilicon are Chinese companies.

Korean companies are keenly watching the results. The US and the United States have been criticizing the trade sanctions. It is hard to predict the results at this time. While the Trump government advocates argue for remedies for their companies, the US solar industry is voicing opposition to trade regulations. Imposing anti-dumping tariffs on imported solar products or restricting imports will lead to a shrinking PV market in the US, which can be a `boomerang` that can lead to job cuts in related fields such as installation and construction.

"Around 80,000 people in California alone and about 300,000 people across the United States are involved in the installation and construction of photovoltaics, and the Trump government will have to consider job cuts," an official from the Korean solar industry said. It is difficult to gauge the results of the ITC decision because the investment tax benefit for solar power generation has been extended until 2021. "

The industry is focused on minimizing price competitiveness once the worst is over. Hanwha Chemical and LG Electronics are in the process of finding out local trends through US corporations and preparing countermeasures. In particular, Hanwha Chemical is focusing on expanding its sales network to small and medium sized wholesalers. It is a strategy to deal flexibly in a volatile market by reducing the concentration of large clients.

Meanwhile, at the industry level, the Korean Solar Industry Association is hiring a US lawyer to prepare for trade sanctions. Lee Bong-rak, vice chairman of the Korea Photovoltaic Industry Association, said, "If the ITC makes an anti-dumping judgment, it can put cold water on the solar market that is looking for vitality," he said. We are discussing countermeasures

By Yang Ji Yun galileo@


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