The photovoltaic (PV) industry’s campaign against “involution” — excessive internal competition and overcapacity — has seen further concrete action. Most recently, another major PV glass manufacturer has voluntarily reduced production.
On the evening of August 4, Flat Glass Group Co., Ltd. (Flat Glass) stated on the investor Q&A platform that it is actively responding to the Ministry of Industry and Information Technology’s call to curb overcapacity by reducing its PV glass supply.
Experts point out that the supply-demand imbalance in the PV sector has evolved into a structural issue across the entire value chain. As a key upstream material, the market condition of PV glass directly affects the health of the entire industry. Leading companies voluntarily limiting production can help stabilize prices and restore the industry's supply-demand balance.
Production Cuts to Combat Overcapacity — Multiple Listed Companies Take Action
According to data from Sublime China Information (SCI), in the first half of 2025, Flat Glass ranked second globally in operational PV glass capacity with an 18% market share. The company’s core business spans PV glass, float glass, architectural glass, and home glass, as well as the mining and sale of quartz for glass production, solar PV power plant construction, and electricity sales. In 2024, revenue from its PV glass business reached RMB 16.82 billion, accounting for 90.01% of its total revenue.
Flat Glass is not the only listed company that has recently announced production cuts.
On July 29, Hainan Development issued an announcement stating that its subsidiary had suspended operations of a 550-ton furnace and five deep-processing lines. At the time, the company explained that intensifying market competition had led to a sharp decline in PV glass prices, and the subsidiary had incurred continuous losses for the past two years, with little prospect of a short-term turnaround. The production cut aims to reduce operating costs and avoid further losses and capital drain.
“Production cuts among PV glass companies are a market-driven move to address the significant supply-demand gap and to phase out outdated capacity,” said Gao Ling, a PV glass analyst at Longzhong Information Group.
In recent weeks, several listed companies have responded on investor Q&A platforms to inquiries about potential production cuts and overall industry conditions.
Kaisheng New Energy stated that the PV glass industry still faces supply-demand mismatches and that price stabilization will take time. The company will closely monitor market dynamics, adjust production lines based on internal resources and advantages, enhance cost control, and avoid falling into excessive internal competition.
“During the first half of 2025, the PV industry underwent structural adjustments. Prices for key products, including PV glass, remained volatile and at low levels,” said Samsung New Materials. “Given current challenges, the company will strengthen risk control, proactively assess PV glass market trends, and ensure that production aligns with market demand.”
In the PV glass segment, efforts to reduce overcapacity have begun to show results.
On August 5, the Silicon Industry Branch of the China Nonferrous Metals Industry Association released data showing that the average price of 2.0mm PV glass had risen to RMB 10.5/m².
“At present, active production cuts in the industry are beginning to yield positive effects. Prices began rising in August, showing a notable increase compared to July,” said Gao Ling. “However, Longzhong estimates the breakeven point for the industry is around RMB 13/m², so there remains a significant gap before reaching profitability.”
According to Longzhong’s data, the PV glass industry reduced production by a total of 8,350 tons/day in July, bringing actual operational capacity down to 86,500 tons/day. Compared with PV module production in August, the supply-demand gap has narrowed significantly. Combined with increased stocking by downstream module manufacturers, inventory has shifted from rising to declining.
Gao Ling notes that the timing of the industry’s breakeven turning point remains uncertain and will depend on how quickly inventories are digested, whether demand can remain above the 50GW level, and the direction of policy developments.
Huatai Securities believes that beyond phasing out outdated capacity, future policy efforts may focus on curbing new and existing capacity — particularly unapproved or underreported projects. Possible regulatory directions include stricter energy consumption and intensity limits, as well as competitive pricing mechanisms.
Source：https://mp.weixin.qq.com/s/k4mORhRjWE6fwVRN4d6JDg
