Can you briefly describe what Suntech has achieved in 2023?
Wu Fei: Founded in 2001, Suntech is among the first enterprises engaged within the analysis, improvement, and manufacturing of PV modules. Having skilled the ups and downs of the business, Suntech has deployed greater than 50 GW worldwide since its inception, with tasks spanning greater than 100 nations worldwide. It has grow to be a well known model within the business and is constantly acknowledged as a Tier 1 enterprise by Bloomberg, boasting many long-term world clients.
In 2023, we delivered the biggest put in capability (2.1 GW) solar energy station undertaking on the earth, the UAE Al Dhafra PV2 Solar Power Plant Project, within the United Arab Emirates.
Also in 2023, our module was acknowledged by the Polish Academy of Sciences with an precise energy discount of lower than 3% in 16 years, which is far decrease than promised.
What are Suntech’s enterprise objectives for 2024?
Wu Fei: The key time period for all the business in 2024 is “worth battle.” From the start of the yr till now, the costs of merchandise all through the economic chain have continued to say no, pushing the business right into a vicious cycle. Some clients use worth as the only criterion for selecting module manufacturers, which I consider is unreasonable. PV module merchandise have a service lifetime of 25-30 years and should generate electrical energy repeatedly and usually. They are usually not client merchandise, however funding merchandise. If one solely focuses on the value, they might overlook the standard of the product. Low-priced merchandise bought immediately could proceed to expertise high quality points within the close to future. We kindly remind newcomers to this business.
This yr, Suntech’s purpose is to strictly management product high quality. Especially for a 23-year-old model like us, we now have already skilled two cycles of PV worth drops: the primary in 2012, the second in 2018. 2024 marks the third cycle. Here, I formally name for an inexpensive number of product elements.
What are the explanations for the latest administration change at Suntech?
Wu Fei: The photovoltaic business is quickly growing, and Suntech’s administration should additionally adapt to the quickly altering market. Suntech attaches nice significance to technological analysis and improvement, product high quality, and invests vital manpower and funds in these areas.
Before 2020, the photovoltaic business accounts for less than a small a part of the power market, and product costs are comparatively excessive, making it a much less fashionable product. However, as the value of photovoltaic modules decreases, photovoltaic merchandise will grow to be cheaper and grow to be a commodity. The scale of manufacturing has additionally elevated tenfold, making it needed to think about large-scale lean manufacturing for financial viability.
Meanwhile, as Suntech expands its worldwide market, we additionally rent extra staff from totally different nationalities. To enhance the effectivity of administration and knowledge at our headquarters, we additionally want extra worldwide expertise.
Suntech’s administration construction has additionally undergone deep optimization, with the institution of two principal departments: the Customer Marketing and Service Center and the Production and Operation Center. The principal duty of the Customer Marketing and Service Center is to prioritize customer support, whereas the primary duty of the Production and Operation Center is to offer clients with probably the most secure and sturdy merchandise. Other departments are liable for servicing these two facilities.
Management modifications are additionally influenced by challenges primarily linked to monetary points inside our mother or father firm. Despite these challenges, our model fame, product high quality, and gross sales capabilities stay sturdy. We maintain a outstanding place as a pioneer in China’s PV business. With the brand new administration group, we purpose to revive Suntech, elevate our model to Tier1 standing, and pave the way in which for a affluent future.
Image: Suntech
What do you see as the primary improvement purpose of the corporate within the subsequent 2-5 years?
Wu Fei: Suntech will give attention to securing new investments and launching new merchandise. I consider that the present state of affairs of worth competitors is unsustainable, and we are going to prioritize product high quality. Our photo voltaic modules have proven distinctive efficiency in numerous installations, comparable to two rooftop PV methods in Germany which have maintained excessive effectivity for greater than 20 years of operation. This reliability exceeds business requirements and exceeds buyer expectations, demonstrating Suntech’s competitiveness. Looking forward, we purpose to attain 30 GW module gross sales in 2026 and 60 GW in 2028.
How do Suntech’s new product traces replicate the corporate’s technological developments?
Wu Fei: This yr, we are going to introduce greater energy H48 and H66 merchandise. The H48 is for the house market, with a black design that matches the aesthetics of the structure and is mild and straightforward to put in.
Our H66 and D66 merchandise are appropriate for industrial and business energy stations and floor energy stations, with decrease temperature coefficient, greater double-sided ratio, and compatibility with mainstream inverters and brackets, that are extra consistent with the wants of energy station customers.
The Ultra V Pro and Ultra X Pro collection characteristic cutting-edge cell expertise and encapsulation supplies that enhance effectivity ranges by 26.5%. The Ultra V Pro collection, particularly, has a 15-year materials provide guarantee and a 30-year linear guarantee.
What does Suntech see as the most important problem within the present market surroundings? What are the alternatives?
Wu Fei: The present market surroundings is kind of difficult attributable to intense competitors brought on by a vicious worth battle. With many new gamers getting into the business, many firms are working at a loss and utilizing low-cost methods that compromise product high quality. This state of affairs poses a big danger to the long-term improvement of the business.
Rather than sacrificing high quality for value discount, Suntech seeks to face out by prioritizing fame and longevity within the business. We consider that longevity and credibility are key components in constructing a robust market presence. By shifting away from the value battle and specializing in high quality, we see a chance to determine Suntech as a trusted and dependable participant within the business.
The questions and solutions on this sponsored interview article are offered by Suntech.
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