Chinese manufacturer Longi says it is not closing its factory in Malaysia or shutting down its production lines in Vietnam, but acknowledges it is making production adjustments at these facilities.
Longi has denied that it plans to close some of its production facilities in Southeast Asia, in response to rumors on various Chinese social media platforms.
The company said it will not gradually close its panel factory in Malaysia, nor will it halt operations on five production lines in Vietnam. It also said the sale to Yingfa Group of two cell production lines, including equipment and facilities, has been suspended.
“We are in a complex environment,” a Longi spokesperson said pv magazine. “Based on our insights and assessments of key drivers in the global photovoltaic market and policies, and to promote a flexible manufacturing model, the company continues to drive digital upgrades and technology transformations across its global factories. This has resulted in adjustments to production plans at various regional locations.”
Longi said it is taking several measures, such as “cross-base support and rotating shifts, to minimize the impact of production plan adjustments on employees and ensure their legal rights are protected.” The company asserted that it will “adjust production arrangements appropriately based on market changes and the progress of its equipment upgrades and renovations.”
Longi’s production adjustments in Southeast Asia are not isolated incidents. Rumor has it that several Chinese PV companies with investments in countries such as Vietnam, Malaysia and Thailand are adjusting capacity or ceasing production. This is due to current overcapacity and high inventory levels in the industry, as well as the US Department of Commerce’s May 16 announcement of anti-dumping and countervailing duties investigations into crystalline silicon PV cells from Cambodia, Malaysia, Thailand and Vietnam .
The US government is expected to impose a preliminary countervailing duty assessment on July 18, 2024, and a provisional anti-dumping duty on October 1, 2024.
At a media briefing this week, Longi President Li Zhenguo addressed the rumors, declaring them “not true.” He noted that the U.S. government’s determination to bring production back domestically is clear. Given the uncertainties in the geopolitical environment and trade defense trends, Longi will continue to cautiously assess its production arrangements, but “has not yet made a final decision.”
In March, Longi unveiled plans to reduce its global workforce due to a “increasingly competitive environment” in the solar industry. “To adapt to changes in the market and improve organizational efficiency, Longi is optimizing its workforce,” a company spokesperson said. pv magazine at the time. “Expected job losses are approximately 5% of the total workforce, and the information circulating online about our company’s ‘30% layoff plan’ is incorrect.”
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