OMNI Features｜China's Solar Industry Faces Overcapacity Crisis．KK Wind Solutions Signs 5-Year Global Service Deal with Vestas

｜China's Solar Industry Faces Overcapacity Crisis
China's solar industry is grappling with severe overcapacity, leading to a sharp decline in new projects and a wave of bankruptcies. In the first half of the year, the number of new solar manufacturing projects fell by over 75%, according to the China Photovoltaic Industry Association (CPIA), with more than 20 projects canceled or suspended.

The canceled projects represent significant losses in production capacity, including over 300,000 metric tons of polysilicon and more than 60 gigawatts of solar cell capacity. Many factories are operating at only 50-60% capacity, and at least six companies have partially suspended operations domestically, with two halting production abroad. The glut in the market has driven solar panel prices below production costs, pressuring profit margins. Experts predict prices may not recover until the end of 2024.

｜KK Wind Solutions Signs 5-Year Global Service Deal with Vestas
Vestas has finalized a five-year global service agreement with KK Wind Solutions, allowing it to utilize KK's factory capacity to support its growing service operations. This partnership will provide spare parts for both new and existing turbines, alongside additional services, with the goal of enhancing the efficiency and reliability of energy production.

The agreement focuses on optimizing the supply chain and ensuring secure and convenient delivery of parts. By doing so, it aims to improve the overall wind service industry through proactive and streamlined processes, benefiting both companies.

Anne Høj, VP of Service Procurement at Vestas, expressed satisfaction with the partnership, highlighting KK Wind Solutions' crucial role in expanding Vestas' service business. Similarly, Kim Wichmann-Hansen, Chief Service Officer at KK Wind Solutions, emphasized the long-standing collaboration and the honor of continuing this joint venture.

Reference: asiafinancial｜KK Wind Solutions