JinkoSolar Holding Co. Ltd.
) has entered into an agreement with China Development Bank for a
15-year loan worth approximately $58 million (RMB360 million).
The loan is backed by the main objective of building photovoltaic
(PV) solar power plant projects to expand and strengthen the
company's Chinese operations.
China Development Bank continues to support its domestic solar
power product manufacturers and service providers by paying out
loans and offering financial assistances. In the last few months,
the bank disbursed approximately $50.9 million (RMB320 million)
and $69.8 million (RMB440 million) as loans to
LDK Solar Co., Ltd.
U.S. solar markets are gradually becoming less profitable for the
Chinese solar module manufacturers. The U.S. Department of
Commerce (DoC) implemented anti-dumping duties of effectively
25.96% and countervailing duties of 15.24%. The U.S. DoC rolled
out these tariffs to tighten supply of the Chinese solar-products
in the U.S. and simultaneously encourage local players to tap the
growing renewable domestic market. These steps have made the
North American solar power market increasingly competitive for
the Chinese solar power product manufacturers.
Currently, most of the Chinese solar product manufacturers are
busy searching new markets. Most of them, including JinkoSolar,
intend to increase their presence in China and hit the domestic
prospects due to higher demand of solar modules. The company has
already delivered its first batch of the 100 kilowatt peak (kWp)
rooftop solar PV power generation system to Eaton Electric Co.,
Ltd, a subsidiary of
Eaton Corporation plc
), in Shenzhen, China.
It is evident from JinkoSolar's recent activities and
transactions that it is in an expansion mode. Apart from
increasing its domestic presence, the company continues to spread
its operations in the Asian, European and African markets. A day
earlier, the company inked an agreement with a solar project
developer to provide high-efficiency solar panels, totaling 115
megawatts (MW), for two projects in South Africa. In Mar 2013,
JinkoSolar opened a sales office in Tokyo, Japan to capitalize on
the increasing opportunities of providing clean and sustainable
energy solutions to the country.
Shangrao, China-based JinkoSolar is a solar PV power product
manufacturer. The company has production operations in Jiangxi
and Zhejiang Provinces in China. JinkoSolar currently has a Zacks
Rank #3 (Hold).
EATON CORP PLC (ETN): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
LDK SOLAR CO (LDK): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
To read this article on Zacks.com click here.