Norway's Renewable Energy Corporation (OSE: REC) is seen as one potential beneficiary of escalating trade dispute concerning solar products between the United States and China. The United States International Trade Commission (USITC) last month agreed to proceed with an investigation on whether the Chinese are dumping solar panels to the U.S. market on the grounds of domestic manufacturers complaining on too low prices from Chinese competitors.
USITC is forging ahead with antidumping and countervailing duty investigations on silicon photovoltaic cells and modules from China with preliminary countervailing duty determination due next week. The move is seen by many as protectionist in nature and has been met with fierce criticism from the Chinese authorities, who in turn accuse the Americans of subsidizing their industry.
Renewable Energy Corporation lost over 80% of its stock market value in 2011 as wafer, polysilicon and solar cell prices all came crashing down on global oversupply and financing concerns. This came on top of continued cost disadvantage that the company’s aging Norwegian factories are at. REC is now aggressively cutting capacity in Norway and if the US were to introduce tariffs on China, REC’s products might become more competitive. REC views the U.S. market as one of the largest growth opportunities in 2012.
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