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, the company has already produced over 200 tons of polysilicon, with larger production capacities gradually coming online. These developments signal that Luoyang's silicon photovoltaic enterprises are beginning to recover from a difficult period.
In recent years, Luoyang City has made significant progress in building itself into a key base for the photovoltaic industry in China. However, since the second half of 2012, the sector faced a downturn due to overcapacity in China, a sharp drop in European demand, and the imposition of "double-reverse" tariffs on PV products. This led to financial strain on many local companies.
In August this year, a breakthrough came when China and the EU reached a price commitment on their PV trade dispute, offering much-needed relief to domestic PV firms. Additionally, the State Council issued "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry," signaling strong government support and paving the way for growth in the domestic market.
Under this favorable policy environment, the leaders of the Luoyang Municipal Committee have placed great emphasis on the development of the silicon photovoltaic industry. They have organized special meetings to discuss and implement supportive policies, which have played a crucial role in reviving local enterprises.
To further support key players like China Silicon High-Tech and Luoyang Suntech, the city is offering tax incentives, including corporate income tax reductions and personal income tax retention for senior executives. Additionally, utility surcharges for electricity will be refunded to these companies. New loans and subsidies or guarantee fees are also being provided to major enterprises.
The high-tech zone management committee allocated 5 million yuan, and the municipal finance department contributed another 5 million yuan from the industrial optimization fund to Luoyang Suntech as starting capital for full-scale production. Under the coordination of the municipal party secretary, Chen Xuefeng, 5 million yuan in emergency liquidity was secured for Shanghai Chaori (Luoyang) Solar Energy. To address funding issues for Luoyang 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 facilitated several loan arrangements. 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 actively applied to the provincial commission for direct power purchasing rights for China Silicon High-Tech. After extensive negotiations, the company became one of only two pilot units in the province, saving approximately 100 million yuan in electricity costs annually.
According to recent data, the global PV market is shifting toward countries like China, Japan, and the United States. It is estimated that global installed capacity will reach 35GW per year. According to the China Photovoltaic Industry Alliance, China's polysilicon production this year is expected to reach about 80,000 tons, with battery component output exceeding 23GW and new PV installations surpassing 8GW.
A responsible official from the Luoyang Municipal Development and Reform Commission stated that the domestic photovoltaic industry is stabilizing, and the market is showing clear signs of recovery. This presents an excellent opportunity for Luoyang’s silicon photovoltaic enterprises to seize the moment during the national policy window and strategic industry adjustments. By doing so, they can secure a commanding position in the industry, revitalize the local economy, and promote the development of the entire silicon photovoltaic industry chain in the city.
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