Are we finally seeing consolidation in the solar sector? The sector has been suffering from oversupply for a long time but the market forces of supply and demand so far have only led to sharp price declines throughout the supply chain. The overcapacity issue persists due to the availability of cheap loans and preferential government policies in China. Finally, here comes the news which looks like the beginning of industry consolidation. Suntech’s Wuxi subsidiary declared bankruptcy on Wednesday, following its default on a $541 million convertible bond.
