In order to counter government’s efforts towards mergers of solar companies, China’s $20 billion solar industry is keeping itself afloat by taking local government aid and by preserving jobs at cash-strapped companies. LDK Solar the world’s second-biggest maker of solar cells, has recently sold its 19.9 per cent stake to a renewable energy firm part owned by the city of Xinyu. The world’s largest solar-panel manufacturer Suntech Power Holdings, on the other hand, received a $32 million loan from the city of Wuxi, where it is based. State-run China Development Bank has been pushing for consolidation of solar panel makers into larger firms, which could lead struggling small firms to close down. Provincial governments, on the other hand, want solar factories to stay open so workers could retain their jobs.
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