Behind the USD600 Million Order of LONGi Solar: Strength Unleashes Great Potential
On July 17, LONGi Solar signed a USD600 million contract with an American company to sell high-efficiency monocrystalline modules in the United States. This is another solid step LONGi Solar as a global leading monocrystalline module manufacturer .made in its overseas deployment.
The growing shipment and expanding global presence of LONGi Solar are obvious facts to all in the industry, they are not only closely related to LONGi’s forward-looking overseas deployment, but also demonstrate the course of globalization of LONGi Solar as a Chinese PV company.
“Financial health” and “technology leadership” are two “sharp tools” of LONGi going global, and they are also the core competitiveness carrying customer value. Adhering to the philosophy of “good corporate operation is the best protection for customers”, LONGi has always been pursuing stable operation and sustainable profitability while developing fast. The 2018Q1 financial report shows that LONGi continues to hold the top position in terms of profitability of PV companies, and rank No.1 in terms of financial health among more than 50 core manufacturing enterprises in the world, which not only reflects the company’s strong profitability and cost control ability, but also provides strong support for the global competition.
The sound financial health and good revenue have provided strong support for technological innovation of LONGi and become the core elements of enterprise growth. According to the statistics of PV-Tech, as of the end of 2017, LONGi invested RMB 2.38 billion in R&D in the past five years, becoming the PV manufacturer with the largest R&D investment in the world.
With the rolling out of global deployment, LONGi has relied on strong technical support and heavy R&D investment to expand the overseas deployment while maintaining a leading edge. The overseas shipment accounted for about 10% of LONGi’s shipment in 2017, and is expected to account for 25%-30% in 2018. LONGi President Li Zhenguo revealed at Intersolar Europe that “LONGi aims at the global PV market, and strives to ship more than 50% of module products to overseas markets by 2020.”
No matter how the industry develops, the enterprise’s core competitiveness will not only be cost and efficiency, but more importantly the customer value delivered by the products, especially in the United States where PV development is more mature and high-efficiency reliable clean energy solutions are desired. The return on value of LONGi Solar’s optimal LCOE solutions and high-efficiency monocrystalline products for overseas markets is particularly evident in the United States.
For LONGi, the USD600 million order from an American customer is a strong endorsement of its overseas market exploration that more customers are willing to pay for high-efficiency products. In the long run, the biggest value is that LONGi will continue to reduce the LCOE with innovative efficient products and advanced technologies.
By maintaining financial health and continuously upgrading technologies, LONGi is committed to making new breakthroughs for the development of the industry and advancing PV grid parity worldwide. From this point of view, Chinese PV companies surviving the competition will surely embark on the road of globalization, and LONGi has already walked in front of the industry.