Trina Solar dumps module assembly sub-contractor in Japan

Facebook
Twitter
LinkedIn
Reddit
Email
Trina Solar had previously reported Q2 2016 shipments to Japan had accounted for 3.1% of total external shipments, or around 50MW. Image: Trina Solar

‘Silicon Module Super League’ (SMSL) member Trina Solar has recently pulled out of a deal to have its PV modules assembled in Japan by module assembly equipment supplier and assembly sub-contractor, NPC Group.

Trina Solar Japan Ltd had signed a long-term, large-scale module assembly contract with NPC Group in April, 2016 which would last through December, 2018 for the production of 130MW of module per annum. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, NPC Group said in recent financial filings that Trina Solar had breached the contract and had not provided any production materials to begin module assembly as well as not providing purchase orders against the contract. 

NPC Group noted that there were no further prospects for the production of modules under the contract, despite the company having undertaken production preparation that included remodelling its module assembly line and expanding its factory facilities and workforce to accommodate the contract assembly agreement.

As a result, NPC group said that the cancelled contract impacted sales by around US$4.8 million in FY Q2 and profit by around US$3.8 million and its module assembly order backlog stood at zero.

Trina Solar had previously reported Q2 2016 shipments to Japan had accounted for 3.1% of total external shipments, or around 50MW. 

However, since the end of the second quarter of 2016 there has been a major change in industry dynamics, due to a collapse in demand in China after FiT changes that have led to overcapacity and plummeting ASP’s across the supply chain. 

Many companies have reacted quickly to the situation that has included headcount reductions, plant closures, lowered utilisation rates and pull-backs in planned capacity expansions such as SMSL member, Canadian Solar. 

One of the challenges facing sub-contractors and suppliers in such an environment is the need to be flexible to customer requirements and contracts as volatility has become an accepted part of the solar industry. The best example has been the long-term polysilicon ‘take or pay’ supply deals established nearly 10 years ago, which led to bankruptcies of polysilicon customers and still threaten the existence of others to this day such as SolarWorld.

12 March 2024
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
8 October 2024
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
26 November 2024
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 28, 2024
Seattle, USA
Solar Media Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA