Germany's specialty chemical products company Wacker Chemie AG (WKCMF.PK, WKCMY.PK) on Tuesday said it has taken a firm stand against efforts to impose trade duties on Chinese-made solar modules in the European Union.
The chemical company's Chief Executive Officer Rudolf Staudigl said, "We are convinced that protectionist measures will not help the domestic solar industry, but rather impair the photovoltaic technology's future prospects."
The company noted that US Department of Commerce decided to impose tariffs of up to 250 percent on Chinese-made solar modules imported into the US, while some market participants in the European Union are in favor of a similar move.
Wacker Chemie is a supplier of raw materials for the solar industry including hyperpure polysilicon, the starting material for crystalline solar cells and also produces silicones which are used as potting materials, adhesives and sealants or encapsulants in solar cells and modules.
According to the CEO, the trade barriers were not a suitable way of ensuring open and fair competition among the market's participants and that only political dialogue could resolve differences of opinion about balanced competitive conditions.
He added that imposing sanctions would only inhibit competition and could provoke a trade war, which would end up being a disadvantage for every company in the solar industry.
Meanwhile, Staudigl stressed that the major share of value will be added when local businesses set up solar systems - regardless of where the solar modules are manufactured.
He also pointed out that additional cost burdens from tariffs for imported photovoltaic modules would hold back the competiveness of solar power within the energy mix, impairing the switchover to renewable energy sources in Germany.
Wacker Chemie has a strong direct presence in Greater China with activities ranging from production and sales to technical support. It now has two technical centers, four production sites and eight sales offices in that country.
Recently, the company showcased innovative silicone products for the photovoltaic industry at SNEC 2012 from May 16 to 18 in Shanghai, China. These included ELASTOSIL Solar 3210 for high-concentration PV systems, and a series of RTV-2 silicone adhesive grades which provide advanced sealing and potting solutions.
In mid May, Wacker Chemie had said it expects strong demand to continue in the second quarter of 2012 as polysilicon demand remains high and siltronic plans to generate positive EBITDA.
Wacker Chemie shares are currently trading at 57.46 euros, up 1.15 euros or 2.04 percent on Frankfurst's Xetra.
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