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Chinese solar firms suspend some production in Southeast Asia after US tariff vacation ends

2 of the world's largest solar panel manufacturers stated they were suspending some production in Southeast Asia today, after a U.S. tariff reprieve on solar panels from some Southeast Asian countries expired.

China's Long Green Energy Innovation said on Friday that it had actually suspended production at a battery plant in Vietnam, while Trinasolar stated on Thursday that centers in Thailand and Vietnam would enter a maintenance shutdown.

Longi stated its further choices would follow an examination of market conditions. The company stated the production halt in Vietnam would have restricted influence on its operating performance, provided the nation represented less than 10% of Longi's total battery production capability in 2023.

Longi also stated that a few of its other plants in Southeast Asia that had been reported closed by media stayed in operation.

While not specifying which media reports it was referring to, it said its plants in Malaysia and part plants in Vietnam were in operation.

The news comes after Longi stated on Tuesday it would change. production pointing out a complicated industry environment however that it. remained positive about the sector's future.

A two-year U.S. tariff vacation on solar panels from 4. Southeast Asian countries expired on Thursday.

The tariffs intend to target shipments by business discovered to be. evading U.S. duties on Chinese goods by completing panels in. Malaysia, Thailand, Cambodia and Vietnam.

Over 80% of U.S. solar imports have actually been coming from the. four targeted nations, according to S&P Global Market. Intelligence.

Experts say completion of the moratorium will have a. substantial effect on solar export volumes from Southeast Asia. to the U.S., which U.S. purchasers have already slowed brand-new. purchases of modules and cells from the region in anticipation.

That will force Southeast Asia-based production to scale. back or redirect supply to other markets, where it could. battle to take on less expensive panels made in China.

Independently, rival Chinese panel manufacturer Trinasolar. said in a declaration to on Thursday that its. centers in Thailand and Vietnam, which mostly serve the. U.S. market, would enter a yearly mid-year maintenance. shutdown.

Demand in the U.S. market is currently experiencing some. short-term changes due to policy modifications, Trinasolar said,. adding that its production strategies would depend on industry and. market conditions.

Trinasolar likewise said it had brand-new cell and module capability in. Indonesia, which is not covered by the U.S. tariffs, under. construction with the start of operations anticipated in the 3rd. quarter. Indonesian state-owned utility PT PLN (Persero) is its. joint endeavor partner.

In the long run, Trinasolar objectives to improve its market. position and to alleviate worldwide trade risks through a. more comprehensive and much deeper diversified layout and localised operations,. the business said.

The United States last month likewise unveiled steep tariff. hikes on Chinese imports including solar panels, electric. cars and batteries. However, those are expected to have. little influence on Chinese producers due to the fact that the U.S. imports few. solar panels directly from China.

(source: Reuters)