LONGi Green Energy plans to build a factory in Germany!

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LONGi Green, the world’s largest PV company, wants to build its first factory in Europe – in Germany.

Li Zhenguo, founder and president of LONGi Green Energy, said in an interview with German media: “We are already preparing to build a factory in Germany. The final decision should be made within six months.

This will be the first plant of a Chinese solar company in Europe. This is a logical step for the Chinese company – after all, they now have almost complete control of the global solar industry. Even in Germany, the birthplace of solar energy, there are almost no installed modules that are not produced in China.

However, the supply chain disruptions of the past two years have made the benefits of having your own solar module production in Europe very apparent. Module prices have risen by 15 to 20 percent, and countless projects have been delayed due to missing important components from China. The German solar industry said the dependence was “far greater in terms of gas than on Russian energy.”

According to current data from the Federal Statistical Office, nearly 90% of the photovoltaic systems (PV) imported from Germany currently come from China. The figures for Europe are similar.

The construction of the Chinese company will be supported by the German solar industry. According to industry sources, LONGi Green Energy is not the only Chinese solar company that has specifically formulated plans for Europe’s first factory.

According to German media, other Asian rivals such as JinkoSolar, Trina Solar and Daqo New Energy are also currently discussing plans for production facilities in Europe. Industry insiders said they are currently waiting for what subsidy programs the EU and German governments will launch. LONGi Green Energy is just the first competitor to make its plans public.

In recent years, Chinese companies have changed their investment strategies. Instead of taking a stake in a European company, they began to build their own factories. LONGi’s plan is also in line with this.

Appropriate government subsidies will be key

For LONGi Green Energy, Europe is one of the most important markets. Although nearly half of the company’s sales come from China, the European market is in second place, accounting for 20% of global business. While the subsidy rate in Germany, the birthplace of solar energy, has

been cut and the market has collapsed, Chinese companies have occupied the world market, including Europe.

Like LONGi, many Chinese companies have benefited from the state’s generous investment. The International Energy Agency (IEA) wrote in its latest analysis that the Chinese government has invested more than $50 billion in new photovoltaic power generation capacity so far, ten times more than in Europe.

Li Zhenguo, President of LONGi Green Energy, also regarded appropriate framework conditions as a prerequisite for building a factory in Germany. Production costs in Europe are certainly higher than in China. “The production of solar modules and all their modules is very energy-intensive. Above all, Germany and Europe need suitable framework conditions. ”

Li Zhenguo said that it has not yet been decided whether LONGi Green Energy will build a separate plant or cooperate with a second company, and the possible Chinese partner is Siemens Energy. The German industrial giants rely heavily on renewable energy, but so far only active in the field of wind power.

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