Wacker Chemie Jumps on Chinese Plans for Solar Subsidies
Wacker Chemie AG (WCH), the second-biggest maker of solar-grade silicon, rose most in more than three years after China’s government announced subsidy plans for the photovoltaic industry.
Wacker was up 12 percent to 48.61 euros at the close in Frankfurt, the biggest increase since April 30, 2009, and the best performance on the Bloomberg European 500 index today. The jump pared the stock’s decline this year to 22 percent, valuing the manufacturer at 2.5 billion euros ($3.3 billion).
China allocated 13 billion yuan ($2 billion) in subsidies for domestic solar companies this year, Xinhua News Agency reported. The Shanghai Securities News said officials may double their target for solar installations and the Ministry of Science and Technology confirmed subsidies for more than 100 developers. The plans throw a lifeline to solar-panel manufacturers and their suppliers after a glut of manufacturing capacity depressed global prices.
Solarworld AG (SWV), Germany’s biggest maker of solar panels, rose as much as 12 percent in Frankfurt. SMA Solar Technology AG (S92), a manufactures solar inverters, rose as much as 7.4 percent. Shares in Chinese solar companies led by GCL-Poly Energy Holdings Ltd. (3800) and Trina Solar Ltd. also jumped.
Wacker’s polysilicon business posted drops of 29 percent in sales and 56 percent in operating profit in the third quarter because of high inventory levels in the photovoltaic industry and the financial difficulties facing manufacturers of solar cells and modules. Solar-silicon prices fell 40 percent in the quarter, Munich-based Wacker said Oct. 24.
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