PV inverter manufacturer SMA Solar Technology said it would close production facilities in Denver, US, and Cape Town, South Africa on continued competition issues and consolidate global inverter production in Germany and China.
The global PV end market demand could exceed 70GW in 2016, driven by strong growth in the US, which has around 10GW of utility-scale projects under construction, according to recent figures from GTM Research. SMA Solar had benefited from the US demand growth in the last two years as US competitors exited the sector due to aggressive pricing and evaporating margins.
However, the expected decline in end market demand in China, Japan and the US in 2017 is expected to lead to a period of overcapacity and ASP declines.
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