After nearly 10 months of shutdown, the production line of Shanghai Chaori (Luoyang) Solar Energy Co., Ltd. has finally entered the trial production phase. Meanwhile, Luoyang Zhongsi High-Tech Co., Ltd., which had been in long-term maintenance and suspension due to market pressure, resumed operations on August 18. Since then, it has produced over 200 tons of polysilicon, signaling a gradual increase in production capacity. These developments indicate that Luoyang's silicon photovoltaic enterprises are beginning to recover from their recent challenges.
In recent years, Luoyang City has made significant progress toward becoming a key photovoltaic industry base in China, with rapid growth in the sector. However, since the second half of 2012, the industry faced a downturn due to overcapacity in China and a sharp drop in European demand, compounded by the imposition of "double-reverse" tariffs on PV products. This led to a difficult period for local manufacturers.
In August this year, a breakthrough came as China and the EU reached a price commitment on the PV trade dispute, offering much-needed relief to Chinese PV companies. At the same time, the State Council issued "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry," signaling strong policy support for the domestic market. As a result, the PV sector is showing signs of recovery and potential for growth.
The leadership of Luoyang Municipal Committee has taken the development of the silicon photovoltaic industry seriously. They have organized special meetings to discuss and implement supportive policies, playing a crucial role in helping enterprises rebound from the crisis.
To further boost the industry, Luoyang City has introduced tax incentives for key PV companies such as China Silicon High-Tech and Luoyang Suntech. These include reductions in corporate income tax, retention of personal income tax for senior executives, and refunds on utility surcharges for electricity costs. Additionally, new loans have been provided to major companies, along with subsidies or guarantee fees to ease financial burdens.
The high-tech zone management committee allocated 5 million yuan, and the municipal finance added another 5 million yuan from the industrial optimization fund to Luoyang Suntech as startup capital. Under the coordination of the municipal party secretary Chen Xuefeng, 5 million yuan in urgent liquidity was also secured for Shanghai Chaori (Luoyang) Solar Energy. To address funding issues for Zhongsi High-Tech, Song Dianyu, a member of the Standing Committee of the Municipal Party Committee, held multiple coordination meetings, and the municipal financial office arranged several corporate loans. On October 12, Luoyang Bank approved a working capital loan of 50 million yuan for China Silicon High-Tech.
The Luoyang Municipal Development and Reform Commission also played a key role in securing favorable electricity pricing for China Silicon High-Tech. After extensive negotiations, the company was included in the province’s only two direct-purchasing pilot units, saving approximately 100 million yuan in electricity costs annually.
According to available data, the global PV market is shifting toward countries like China, Japan, and the U.S. It is estimated that global installed capacity will reach 35 GW per year. The China Photovoltaic Industry Alliance reported that China's polysilicon production this year is around 80,000 tons, with battery component output exceeding 23 GW and new PV installation surpassing 8 GW.
A relevant official from the Luoyang Municipal Development and Reform Commission stated that the domestic PV industry is stabilizing and the market is warming up. This provides an opportunity for Luoyang’s silicon photovoltaic enterprises to seize the strategic adjustment period of the polysilicon industry and take full advantage of national policy support. By doing so, they can strengthen and expand the city’s entire silicon photovoltaic industry chain, driving long-term growth and revitalization.
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