Analysts urge shake-up at top-tier of China's solar industry

'Bold moves' are needed to restore China's solar industry to health, says Barclays

Consolidation at China’s top solar companies is needed if the industry is to return to a sustainable level of profitability, says Barclays.

In a report, analysts say that demand for solar panels has improved thanks to growth in new markets such as Japan and Eastern Europe.

Demand expectations are up about 30% since the beginning of the year, with estimates of more than 30GW in global installations for 2012.

But on the supply side, more drastic steps need to be taken to cut overcapacity to restore the industry to health.

About 25 established solar companies have filed for bankruptcy since summer last year, reducing industry capacity by 10-15% or 5-7GW, according to Barclays’ estimates.

However,…

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