JinkoSolar Holding Co. Ltd. (JKS - Free Report) has entered into an agreement with China Development Bank for a 15-year loan worth approximately $58 million (RMB360 million). The loan is backed by the main objective of building photovoltaic (PV) solar power plant projects to expand and strengthen the company’s Chinese operations.
China Development Bank continues to support its domestic solar power product manufacturers and service providers by paying out loans and offering financial assistances. In the last few months, the bank disbursed approximately $50.9 million (RMB320 million) and $69.8 million (RMB440 million) as loans to ReneSola Ltd. (SOL - Free Report) and LDK Solar Co., Ltd. , respectively.
U.S. solar markets are gradually becoming less profitable for the Chinese solar module manufacturers. The U.S. Department of Commerce (DoC) implemented anti-dumping duties of effectively 25.96% and countervailing duties of 15.24%. The U.S. DoC rolled out these tariffs to tighten supply of the Chinese solar-products in the U.S. and simultaneously encourage local players to tap the growing renewable domestic market. These steps have made the North American solar power market increasingly competitive for the Chinese solar power product manufacturers.
Currently, most of the Chinese solar product manufacturers are busy searching new markets. Most of them, including JinkoSolar, intend to increase their presence in China and hit the domestic prospects due to higher demand of solar modules. The company has already delivered its first batch of the 100 kilowatt peak (kWp) rooftop solar PV power generation system to Eaton Electric Co., Ltd, a subsidiary of Eaton Corporation plc (ETN - Free Report) , in Shenzhen, China.
It is evident from JinkoSolar’s recent activities and transactions that it is in an expansion mode. Apart from increasing its domestic presence, the company continues to spread its operations in the Asian, European and African markets. A day earlier, the company inked an agreement with a solar project developer to provide high-efficiency solar panels, totaling 115 megawatts (MW), for two projects in South Africa. In Mar 2013, JinkoSolar opened a sales office in Tokyo, Japan to capitalize on the increasing opportunities of providing clean and sustainable energy solutions to the country.
Shangrao, China-based JinkoSolar is a solar PV power product manufacturer. The company has production operations in Jiangxi and Zhejiang Provinces in China. JinkoSolar currently has a Zacks Rank #3 (Hold).