US and Japan top solar module shipments for Hanwha Q CELLS in Q2

Facebook
Twitter
LinkedIn
Reddit
Email

Tier-one PV manufacturer Hanwha Q CELLS' PV module shipments have increased 12.2% quarter-over-quarter, driven by shipments to the US, which accounted for 37% of total shipments by revenue in the second quarter.

Hanwha Q CELLS was able to increase shipments to US as its production facilities in Malaysia and South Korea are not impacted by US anti-dumping duties and as a result sales and shipments to the US have rapidly become its major market. 

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

The company also benefited from strong demand in Japan, accounting for 21% of its 2Q shipments in the second quarter. 

However, the EMEA region accounted for only 8% of total shipments, compared to 34% in the first quarter of 2015, due to a significant pull-in of business during the first quarter ahead of an expected rise in the EU Minimum Import Price (MIP).

Sales in the EMEA region were also impacted by strong UK demand in the first quarter ahead of major FiT changes and the pause in the second quarter, 

With higher demand and selling margins in the US and Japan, Hanwha Q CELLS is able to limit its shipments into China, which offer some of the lowest margins in the industry. The company said that it expected to maintain shipments in China to 5-10% of total shipments for the remainder of the year.

Total shipments included 561MW of external shipments, 25MW of OEM and 28MW of shipments to its own downstream projects.

Total revenue in the first quarter of 2015 was US$338.0 million, an increase of 1.3% from the previous quarter, while gross profit rose 20.7% quarter-over-quarter to US$58.4 million. Gross margin improved 277 basis points quarter-over-quarter to 17.3%, exceeding the company's guidance of 15-17%.

Seong-woo Nam, chairman and CEO of Hanwha Q CELLS said: “The second quarter was the first full quarter reflecting the merger with Q CELLS in February of this year. In particular, shipment volumes were higher and growing, gross margins are expanding, our product quality is much improved, and our manufacturing scale and efficient production contributed to further reductions in our cost structure. Our ability to ship modules duty free to the US from plants in Malaysia and Korea greatly enhances our competitive position in that market, which now represents more than a third of our total shipments. We expect our US presence to improve further as we will begin to ship modules to NextEra to fulfill the 1.5 GW contract. Pricing remains higher in the US than other markets, so a bigger presence there will improve our profitability going forward.” 

Guidance
 
Hanwha Q CELLS said it expected third quarter total shipments to be between 800MW to 820MW and gross margin should exceed 18%. 

The company reiterate dits full-year guidance of total module shipments of 3.2-3.4GW and gross margin of 17-19 %. 

The company is seeing continued strong demand, reflected in increasing manufacturing utilisation rates compared to the previous year. The company noted that it expected utilisation rates to be effectively at 100% by year-end, up from 82% in the first quarter of 2015. 

“We remain on track to expand to 4.3 GW in both cell and module nameplate capacity by year end, making us one of the largest solar manufacturers in the world. Our fully-automated production facilities continue to enhance product quality and reduce costs. Our target of reaching fully optimized module manufacturing costs of low US$0.40/W by year end is in sight and achievable,” added Nam.

Read Next

December 4, 2024
Solar will form the cornerstone of Indonesia’s renewable power sector, according to forecasts made by think tank Ember Climate.
Premium
December 4, 2024
PV Talk: With most US clean energy projects located in Republican states, and their economic benefits flowing to the constituents of such states, Carl Fleming, partner at law firm McDermott Will & Emery, says the IRA tax credits for renewables should stay in place despite next year's regime change.
December 4, 2024
The contracts are spread across 23 large-scale renewables projects, 19 of which are solar PV projects with a combined 1.5GW capacity.
December 4, 2024
The US added 8.6GW of new solar capacity in the third quarter of this year and began solar cell manufacturing for the first time since 2019.
December 4, 2024
A shift towards residential energy storage has seen Western inverter manufacturers lean into more complex, digital energy management products.
December 4, 2024
As solar panel prices continue their downward trend in November, module prices are expected to face a ‘slight uptick’ in December, according to the latest pv.index report.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA