Canadian Solar Inc. has announced that a severe tornado damaged its solar cell factory in Funing County, Jiangsu Province, China.
According to the company, the tornado occurred in the afternoon of June 23 and caused property damage and personal injuries. The Funing solar cell facility is currently shut down while the company assesses the extent of the damage.
Canadian Solar notes it carries various forms of insurance, including for its facilities and employees, and it is reviewing the extent and scope of this coverage with its insurance carriers. At this moment, the company expects to recover substantially all of its financial losses through insurance. Canadian Solar’s other wafer, cell and module manufacturing facilities in China and abroad are not affected.
“Our thoughts are with the families of Canadian Solar employees and the local residents impacted by the severe weather,” comments Dr. Shawn Qu, chairman and CEO of Canadian Solar. “We have immediately dispatched our internal emergency response team from our other facilities in China to help our employees in Funing and people in the local communities. We are assessing the situation but do not expect it to have a material impact on our business.”
Funing is the newer and smaller of the company’s two solar cell factories in China. Canadian Solar says it was anticipating that solar cell production from the Funing cell factory would reach approximately 267 MW in the third quarter of this year, representing 15-20% of its solar cell requirements for the quarter. The company now plans to cover its solar cell needs by increasing the output from its Suzhou solar cell factory, ramping up production at its new cell factory in Thailand and purchasing additional solar cells from its long-term third-party suppliers. As a result, the company says it expects to fulfill its module delivery commitments and maintain its annual module shipment guidance.
Photo courtesy of Canadian Solar’s website