本文摘要：Several days of angry demonstrations by local residents after a leak of fluoride from a cell manufacturing plant...

Update 2

According to an investor note issued by Jeffries equity analyst, Jesse Pichel, Chinese media reported that JinkoSolar had been fined US$75,000 due to the chemical leakage, which has also stopped manufacturing at the plant for an unspecified time.

The Jeffries analyst expects the fallout from the high-profile incident will force lower-tier Chinese module manufacturers to invest in better environmental protection measures, raising manufacturing costs in the future.

"This incident will raise awareness of environmental protection and increase cost for new entrants who made shortcuts, in our view. We believe the tier-2/3 OEMs will have to invest more in their production facilities to avoid similar environmental and social issues. This will add more burden in addition to the weak demand and low utilization problems," he noted.

Update 3

JinkoSolar said it expects to be back in production in days while investigation of chemical leak continues. The company has provided its first written statement regarding the leak of waste containing fluoride at its solar cell manufacturing plant in Haining city, Zhejiang Province, China. The company noted that a local environmental protection authority is investigating the incident, while the company will immediately put right any "deficiencies in environmental protection." However, Jinko noted that it expected to resume operations at the plant "within the next few days."

Jinko also noted that though production at the cell production plant had halted, it would source cells in a tolling arrangement with other unidentified suppliers, which would not disrupt module production downstream or affect module shipments to customers. Haining had the capacity to produce 1,100 MW of solar cells per year as of June 30, according to the company.

JinkoSolar said it has sincerely apologized to local residents of Haining and its employees for any inconveniences caused.