of Longji Green Energy, said in an interview with German media: "We are already busy preparing to build a factory in Germany." A final decision should be made within six months.
This will be the first plant in Europe for a Chinese solar company. This is a logical step for the Chinese company, which, after all, now has almost complete control of the global solar industry. Even in Germany, the birthplace of solar energy, there are almost no installed components that are not produced in China.
However, the supply chain chaos of the past two years has made the benefits of having your own solar module production in Europe very clear. Component prices have risen by 15 to 20%, and countless projects have been delayed by the absence of important components from China. The German solar industry says this dependence is "far greater in terms of natural gas than in terms of Russian energy.".
According to the current data of the Federal Statistical Office, nearly 90% of the photovoltaic systems (PV) imported by Germany come from China. The figures for Europe are similar. The
Chinese company will be supported by the German solar industry. According to industry reports, Longji Green Energy is not the only Chinese solar company that has made specific plans for the first factory in Europe.
According to German media, other Asian competitors such as JinkoSolar, Trina Solar and Big New Energy are also discussing plans for European production facilities. Industry insiders say they are waiting for the European Union and the German government to introduce what subsidy plans. Longji Green Energy is only the first competitor to go public with its plans.
In recent years, Chinese companies have changed their investment strategies. Instead of taking stakes in European companies, they started building their own factories. The plan of Longji Green Energy is also in line with this point. Appropriate government subsidies will be key.
For Longji 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 the second largest, accounting for 20% of the global business. While the subsidy rate in Germany, the birthplace of solar energy, has been cut and the market has collapsed, Chinese enterprises have occupied the world market, including Europe.
Like Longji Green Energy, many Chinese companies have benefited from the generous investment of the state. To date, the Chinese government has invested more than $50 billion in new photovoltaic capacity, ten times more than Europe, the International Energy Agency (IEA) wrote in its latest analysis. Li Zhenguo, president
of Longji Green Energy, also regards suitable framework conditions as a prerequisite for building factories in Germany. Production costs in Europe are certainly higher than in China. "The production of solar modules and all their components is very energy-intensive.". Above all, Germany and Europe need the right framework conditions.
Li Zhenguo said that it has not yet been decided whether Longji Green Energy will build a factory alone or in cooperation with a second company, and that the possible Chinese partner is SIEMENS Energy Company. German industrial giants rely heavily on renewable energy but have so far only been active in wind power.
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