Wuxi Suntech was founded in Wuxi on 200 1 by Yushi, engaged in the production of photovoltaic cells and modules. In 2005, Shi registered and established 65,438+0,000% shares of Suntech "Suntech Power Company" in the British Virgin Islands and listed on the New York Stock Exchange.
In 2006, Suntech Power's share price reached more than 40 dollars, making it the richest man in China with a wealth of 2.3 billion dollars. Wuxi Suntech has always been the largest production base of Suntech Power Company, which has concentrated more than 95% of the production capacity of Suntech Power Company. In 20 12, the production capacity of photovoltaic modules reached 2.4 GW, making it one of the four largest photovoltaic enterprises in the world.
Insiders pointed out that Wuxi Suntech has good technology and brand, which led to its bankruptcy and restructuring step by step. In addition to the vicious price war in the industry, the escalation of foreign trade war and the financial crisis, it is also related to its frequent decision-making mistakes.
In 2006, faced with the skyrocketing price of polysilicon, Suntech Power signed a long-term order for polysilicon with a fixed price of 10 year with MEMC of the United States. According to this long-term contract, Suntech Power can purchase polysilicon at the price of 80 USD/kg, when the retail price of polysilicon in the market exceeded 150 USD/kg. However, after 2008 10, the price of polysilicon plummeted, reaching only $35/kg by the end of 201/kloc-0. Suntech Power had to terminate the long-term contract and pay MEMC $2,654,380.2 million.
Suntech Power also tried to develop amorphous silicon thin-film batteries, and invested $300 million to build a production line in 2007. However, the financial crisis in 2008 led to a sharp drop in the prices of crystalline silicon and crystalline silicon batteries, which made the project uncompetitive and had to stop production.
"China's photovoltaic industry is an emerging industry after all. In the absence of international experience, most companies' decisions are too radical and bold, and Suntech is even more aggressive and adventurous. " Wang Bohua, secretary general of China Photovoltaic Industry Alliance, analyzed.
Xu, secretary-general of Jiangsu Photovoltaic Association, said that enterprises supporting Wuxi Suntech, such as Asia Silicon Industry and Zhenjiang Fengyuan, were built earlier, and they were the "children" of Suntech, but in the later period, there did exist the phenomenon of purchasing at a price higher than the market. On March 8 this year, Suntech's board of directors voted to remove Shi from the post of chairman.
The living environment of photovoltaic enterprises has turned sharply, which has made Wuxi Suntech worse. Statistics show that the price in solar module has dropped from 2065438+ 1.4 USD/watt in 2000 to 70 cents/watt at present, and the industry profit rate is close to zero. At the end of 2005, the loan of Suntech Power Bank was only $56 million, which had climbed to $3.7 billion by the end of 20 12.
History's stubbornness and chaotic strategic decisions have led to the current situation. "A series of uncontrolled and ineffective chaotic investments burned Suntech's savings and eventually led to the current situation."