GCL-Poly Energy mulls offshore move to escape EU duties on solar products

GCL-Poly Energy Holdings, the world's largest maker of polysilicon, may partner with mainland firms to establish offshore plants and circumvent potential European Union anti-dumping duties.

"We do not rule out forming strategic alliances with our downstream customers to set up overseas production capacities so as to keep up our sales," executive president Shu Hua said after the Jiangsu province-based firm's annual general meeting of shareholders.

The company, which also makes solar wafers, sells its products to makers of solar cells, which are then packaged into panels.

Brussels plans to impose punitive import duties averaging 47 per cent on mainland wafers, cells and panels. Germany, Britain, the Netherlands and at least 12 other members of the 27-nation EU are against the duties for fear of reprisals from Beijing and a potential loss of business, according to a Reuters survey. A decision on the duties is expected on Thursday.

The US Department of Commerce in October imposed anti-dumping duties averaging 25.96 per cent and anti-subsidy levies averaging 15.24 per cent on mainland solar cells.

That left a loophole for mainland firms - outsourcing the process of turning wafers into cells to places like Taiwan, which are not affected by the tariffs.