1) It acquired MSK, a Japan company of solar assembly. MSK has low margin and whether the integration will be successful is not certain;
2) Suntech is engaging in a lot of expansions which the analyst deemed "inefficient". From other sources I read STP is building a R&D center and manufacturing facilities in a hi-tech park in Shangahi. It is also building silicon facility in Qinghai;
3) competition will intensify.
On the upside, recent contract with a US supplier locked in 10 year silicon supply cost much lower than the current market price.
And the overall market will continue to grow.
2) Suntech is engaging in a lot of expansions which the analyst deemed "inefficient". From other sources I read STP is building a R&D center and manufacturing facilities in a hi-tech park in Shangahi. It is also building silicon facility in Qinghai;
3) competition will intensify.
On the upside, recent contract with a US supplier locked in 10 year silicon supply cost much lower than the current market price.
And the overall market will continue to grow.