The slump in the global solar industry may be over soon due to industry consolidation and improving demand, the world's leading solar cell maker has said.
Solar stocks were hit last year as manufacturers, mainly Chinese companies, ramped up production while governments in Germany and Italy, the traditional market, slashed subsidies for new installations, the Shanghai Daily reported Thursday.
Cao Min, chief financial officer of Nasdaq-listed JA Solar Holdings Co, said Thursday the bad times may end in the second half of 2012 or the first half of next year.
"You can see that a number of small players have been phased out during the slump, and companies who survive are those with the best technology, costs and capital strength," he said.
Cao was speaking to the media after JA Solar signed a strategic partnership agreement with the Shanghai Institute of Technical Physics to improve R&D capabilities.
Solar panel prices are expected to stabilize as a result of tighter inventories and improving demand. While demand in traditional markets has showed improvement, installations in China are also accelerating.