CHINA - Shanghai Chaori Solar moves into mining

A global solar power supply glut has forced China’s Shanghai Chaori Solar Energy Science and Technology to move into the mining sector. The company will invest up to $50 million to establish the Hong Kong Chaori Mining Investment Company which will seek new growth opportunities and engage in mining resource exploration. The new business has filed application to the Shenzen Stock Exchange.

The Chinese government’s call for private investment abroad and its new policies ensuring more support from financial institutions has also prompted Shanghai Chaori’s diversification.

Data from Bloomberg New Energy Finance indicates there has been an oversupply in all parts of the solar supply chain, prompted in part by cuts to European subsidies, which has driven down prices and trimmed sector profit margins. Bloomberg says Chinese solar-module prices sank to a record 77 cents/watt as of July 2, which is a massive 47% fall from the previous year.

Shanghai Chaori was established in 2003 in Shanghai’s Yangwang economic district to specialize in manufacturing various monocrystalline and polycrystalline solar modules and lights, with the majority exported to Europe and America.

The company’s financial losses are expected to double the profit of US$20.7 million posted for the 2011 calendar year.

www.chaorisolar.com