Manufacturers run a higher risk of shortages should factory shutdowns be extended, according to the China Photovoltaic Industry Association, citing feedback from companies. This could raise production costs and increase cash flow pressure.
While some companies have kept parts of their production lines running during the holiday, many could struggle to resume full production as travel restrictions lead to a shortage of workers, Liu said.The association has been seeking feedback from solar companies over the impact of the virus on their supply chains. More than a dozen Chinese provinces have extended the new year break until Feb 9.
Some overseas manufacturing plants could also be hit as they will be unable to receive components from China given flight restrictions, he said.