Under the name of coalition we have a German company leading 6 unknown American companies in a case against Chinese. The inability to product competitive product led SolarWorld to leave its own country for US, however the pricing advantages of scale and lesser cost are pushing this expensive producer again to the margins of operational ability. This sounds a bit desperate Herr Asbeck.
This is a fragment from article on SolarWorld, which appeared in OregonLive on October 27, 2010 titled “SolarWorld CEO Frank Asbeck sees United States as 'God's country' for green power “ on Chinese competition:
“Herr Asbeck, a celebrity of sorts in Europe, is just breaking into the U.S. business scene, where he's poised to become a force as solar takes off. He speaks his mind publicly, unlike buttoned-down German execs stationed in Portland. Take his pet peeve, the challenge of competing with heavily subsidized Chinese manufacturers. "How can you produce anything in the U.S.," he asks, "as long as Chinese are paid like donkeys?"
And elswhere ‘Asbeck said he'd dropped plans to build a compound for a pride of Zimbabwean lions. But he compared his company to a circus, filled with highly qualified specialists, some of whom have worked in the solar industry 30 years.
His specialty, he said, is being an entrepreneur. His secret to success: not going bankrupt. "I'm only the director of the circus," said Asbeck, before departing The Nines for the Oregon Zoo to be welcomed at a luncheon reception attended by Gov. Ted Kulongoski and U.S. Sens. Ron Wyden and Jeff Merkley.”
Ron Wyden is a Senator who has been very vocal about China and its subsidies and appears to be in the company of Asbeck on more than few occasions.
It appears birth of Coalition coincides with number of shutdowns in US and Germany by SolarWorld. Possibility of bankruptcy may not be out of the question as SolarWorld products are becoming visibly inferior to competition and continue to be extremely expensive. It would be interesting to know what Herr Asbeck was doing when industry was lowering its costs, it sounds clownish or circus a like to solve operational problems with petitions to impose duties to make expensive product competitive again. Just few weeks ago a Qatar company which SolarWorld is heavily invested in announced plans to build polysilicon factory and spend $1B in capital expenditures. This is worth $125 per kg, while many companies are doing it at $35 to $50.
In xenophobia against the Chinese hopefully American consumer does not need to be exposed to expensive product so SolarWorld can be profitable again. Protectionism has never succeeded in a long term. American solar revolution just started. Taiwanese companies, Korean companies and Chinese companies are going to win the market where quality and technological development go hand in hand with efficiency and always improving cost structure.
