1/ Longi Green Energy Technology, the world's largest solar manufacturer, slashed wafer prices by up to 31% in response to intensifying cost competition.
2/ This reduction comes as solar silicon prices dropped nearly 50% since early Feb due to increased production and material shortages (due to supply chain disruption).
💰 Estimated Cost Savings: Unquantifiable. Raw Material Cost ~75% – ~80% of operating cost/~56% - ~59% of operating revenue. Thus, a massive 1/3rd fall in material cost
💼 Cost Optimisation Impact:
1/ While this move benefits consumers with more affordable solar panels, it could intensify cost competition among manufacturers and potentially impact their profit margins.
2/ Longi's move reflects the growing concern about excess capacity in the solar industry, with its president warning that it could lead to closure of over half companies in the sector.
Country: China
🏢 Company: Longi Green Energy Technology Co., Ltd.
🛍️ Industry: Photovoltaics
💼 Cost Element: Raw Material Cost
🔍 Nature: Opex
🔢 Cost Classification: Variable Cost
Source: June 2, 2023 | Tech central | https://techcentral.co.za/worlds-biggest-solar-panel-maker-is-fuelling-a-price-war/226305/
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