Longi Green Technology, the world’s largest solar panel manufacturer, is poised to cut its workforce by nearly a third amidst industry challenges stemming from oversupply and intense competition.
Workforce Reductions Amid Industry Struggles
Longi Green Technology, a prominent Chinese solar company, plans to slash staff numbers by up to 30%, extending layoffs initiated four months ago. The decision follows widespread redundancies within China’s solar sector due to plummeting prices for solar cells.
Impact of Oversupply on Solar Industry
The International Energy Agency (IEA) has warned of a significant solar panel supply glut, with an anticipated 1,100 gigawatts (Gw) of supply projected for this year compared to just 402Gw of demand. This surplus is expected to persist, with production capacity projected to soar to 1,300Gw by 2028.
China’s Dominance in Solar Supply Chains
China’s solar industry holds sway over global supply chains, driving prices down through fierce competition. The country’s strategic policies aimed at reducing solar prices have solidified its grip on the industry, making it challenging for Western competitors to keep pace.
Implications for Global Solar Market
The turmoil in the solar industry extends beyond China, impacting international players. For instance, CubicPV, backed by Bill Gates, scrapped plans for a US-based factory following changes in subsidy rules, indicating challenges even in regions with supportive green energy policies.
As the solar market grapples with oversupply and pricing pressures, industry players are navigating a rapidly evolving landscape, highlighting the need for adaptability and strategic planning in the renewable energy sector.
Source：telegraph.co.uk
