Leading PV manufacturer Trina Solar said it would continue to meet demand for its PV modules in the US, despite the US International Trade Commission’s (ITC) final determination on anti-dumping and countervailing duties issued yesterday.
Trina Solar had been a mandatory respondent to both of the investigations regarding China, which led to the company receiving a final dumping tariff of 26.71% and a final subsidy tariff of 49.79%.
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However, the company noted that it expected the combined tariff to be reduced after the US Department of Commerce (DOC) completes its double-counting analysis over the next few weeks.
Chinese tier-1 PV manufacturers will be required to pay upfront deposits and accept lower margins on product shipped to the US from China, which has already led to many firms reducing their exposure to the US PV market as margins are still in recovery mode from over two years of chronic industry overcapacity.
Trina Solar is the first of major tier-1 supplier to state that it would continue to supply modules to the US market, while taking an impact on margins. The company has been in a better financial position than some of its rivals in 2014, returning to profitability and increasing shipments significantly over 2013.
Its manufacturing scale and cost structure as well as relatively low duties, compared to rivals is also a factor at play in the company continuing to ship to the US. However, it remains uncertain at the moment which Chinese suppliers, other than Trina Solar will continue to support module shipments to the US.
However, Trina Solar like others have noted in previous earnings calls last year that outside a settlement between US and Chinese authorities it would be considering producing solar cells and modules outside China to avoid the US duties.
Trina Solar has been operating a full capacity for much of 2014 and through the first quarter of 2015, according to analysis from IHS. The company is expected to announce new capacity expansions at the time of releasing fourth quarter and full-year financial results in March, 2015.
In response to the final ITC ruling, Trina Solar also noted that it was considering filling an appeal to the final determinations issued by the DOC and the ITC.
