The impact of 2019-nCoV epidemic on the supply chain of solar-related industries

11/02/2020
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The epidemic affects not only the pace of production and development of China’s solar industry, but also the overseas companies which rely on importing frames, back panels, connecting boxes and photovoltaic brackets from China. Ms sun, a senior analyst at Wood Mackenzie’s energy transition research team, said component production in Southeast Asia and the U.S. typically requires one to two months for materials replenishment of on-site inventory. If this situation continues in mainland China for more than a month, factories in Southeast Asia and the U.S. will begin to be in short supply and then reduce their output. Most of the components of the global solar cell industry are made-in-China, so any potential pressure could have an impact further in the world.

The epidemic affects not only the pace of production and development of China’s solar industry, but also the overseas companies which rely on importing frames, back panels, connecting boxes and photovoltaic brackets from China. Ms sun, a senior analyst at Wood Mackenzie’s energy transition research team, said component production in Southeast Asia and the U.S. typically requires one to two months for materials replenishment of on-site inventory. If this situation continues in mainland China for more than a month, factories in Southeast Asia and the U.S. will begin to be in short supply and then reduce their output. Most of the components of the global solar cell industry are made-in-China, so any potential pressure could have an impact further in the world.

Ms Sun added that orders for March and April would be delayed, and orders scheduled for later in the second quarter of 2020 could also be delayed. She said component’s delaying delivery would affect project construction schedules around the world, with projects coming into executing in the third and fourth quarters of 2020 likely to be particularly hard hit.

The supply disruption also mean potential price inflation could come in advance. If one day people can make effective use of solar energy, trust it will be able to solve a large number of energy problems. After all, solar energy conforms with the sustainable development strategy and can ensure the sustainable development of mankind, which requires scientific researchers to work harder.

Vietnam, Malaysia and Philippines have already restricted visas on visitors from China, including Chinese workers and managers at these solar manufacturing plants, Wood Mackenzie added. The move will affect production of Chinese company’s subsidiaries who locate at the Southeast Asia and reduce the total component output.

Our company has resumed production activities orderly and will restore the capacity as soon as possible to ensure the smooth progress of clients’ projects.

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