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ReneSola Announced to Quit the EU-China Minimum Import Price Agreement

published: 2015-03-12 16:02

After EU proposing to eliminate Canadian Solar, ReneSola and ET Solar from the EU-China Minimum Import Price (MIP) agreement due to alleged violations, ReneSola decided to quit the agreement. ReneSolar explains in a statement that the company will turn to focus on quality upgrade, OEM business and cost-cut instead of being restricted by MIP.

Earlier this week, Mr. Xianshou Li, Chief Executive Officer of ReneSola, said that the MIP shipments represent a small percentage of the company’s total module shipment and have no significant impact on its business. However, PV Tech reported that Li sent a letter to its customers and announced to exit the MIP. According to PV Tech, the letter reads: “In this notification, they stipulated that MIP companies could not to [sic] sell overseas OEM modules to the EU, as it is impractical and difficult to monitor. As a consequence we made a hard but sensible decision to exit from MIP list. […] Following our exit from MIP, our primary focus will be on our OEM manufacturing, improving quality, performance and cost. As we will no longer be subject to the EU Commission's review, customers will not be implicated in any investigation by the EU Commission regarding the purchase of our products. As a result, we are able to reduce unnecessary inconveniences and uncertainty to ensure that the best interests of our customers are foremost, and that we can align in a way which creates better cooperation and healthier global trading conditions.”

Angus Kao, analyst of EnergyTrend, commented that ReneSola’s move is a method to get rid of MIP’s restriction. First, ReneSola shows a decision to completely produce PV products in its European facilities with non-China-made cells rather than shipping from abroad manufacturing sites. Second, it might be helpful for raising the price of PV products to meet higher profits. This translation is correspondent to Li’s letter, which reveals the company’s transition to focusing on OEM production in the European region. As long as ReneSola offers EU-made products, the company will not be affected by the regulations of MIP.

(Photo Source: ReneSola)

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