Trina Solar looks for ways to circumvent US restrictions
Chinese company Trina Solar has announced the construction of a factory in Vietnam, which will be its third in the country. The 25-hectare project will cost USD 400 million. The company plans to launch the plant in 2025.
The solar panel manufacturer decided to build a new plant after the US increased tariffs on its products. The restrictions affected batteries made in Thailand. By building capacity in Vietnam, it will be able to circumvent the sanctions while increasing supplies to the US.
The reason for the restrictions on Trina Solar products was an investigation by the US Department of Commerce. In September 2023, US officials said that the company was one of five Chinese solar companies that had engaged in improper practices. The latter had set up their power plants in Thailand and a number of other Asian countries to circumvent the tariffs imposed by the US on Chinese manufacturers. These restrictions will come into force in the middle of this year but have already affected many companies, including Trina and its facilities in Thailand.
It is worth noting that after tightening the rules for Chinese companies, the US is actively monitoring their activities outside China. As a result, opening facilities in other countries is a popular way for many PRC manufacturers to circumvent export restrictions. Southeast Asian countries, including Thailand, are seen as particularly popular.
As for Trina’s plans, the company is the largest manufacturer of photo panels in Vietnam. In addition, the company is increasing its investment in the country as it sees it as a promising destination.
Trina Solar business overview
Founded in 1997, the company is one of the top three solar panel manufacturers. Since 2020, Trina’s shares have been traded on the Shanghai Stock Exchange. However, one of China’s richest men, Gao Jifan, holds a controlling stake. The company operates in the solar energy sector and produces:
– semiconductor wafers;
– monocrystalline silicon ingots;
– solar panels for use in power plants;
– panels for residential and commercial installations;
– power plant equipment;
– trackers.
In addition to China, Trina’s main markets are Japan, Vietnam, India, Korea and the United Arab Emirates. European countries, the United States, Brazil, Mexico and Australia are significant customers. Europe accounts for approximately 21% of sales, the US for 11%, and China for over 38%.
In addition to factories in China, Thailand and Vietnam, Trina’s structure includes a state-owned science and technology centre conducting photovoltaics research.
