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Solar Panel Distributor Foresees Expansion
Sunday, July 26, 2009 5:57 PM


(Source: The Register Guard)trackingBy Sherri Buri McDonald, The Register-Guard, Eugene, Ore.

Jul. 26--The future of Centron Solar, the Chinese startup that is establishing a U.S. solar panel sales hub in Eugene, depends largely on one man: its leader, Ocean Yuan.

People who know Yuan, 46, describe him as high-energy and deeply committed to his goal of reducing the cost of photovoltaic solar panels to meet more of the world's energy needs.

But it's too early to tell whether Centron, a consortium of Chinese solar companies, will become a major solar player, or whether the company will grow rapidly in Eugene as Yuan envisions.

Yuan projects that within a year, Centron could employ up to 300 people at its Eugene customer service center selling panels nationwide, plus at least 50 workers doing final assembly. Such growth would be welcome in a county with a jobless rate of about 13 percent.

Centron already has started shipping Chinese made panels to its west Eugene warehouse and selling some, although Yuan won't say how many. He said he is seeking to secure space -- possibly the vacant former Shorewood Packaging facility in Springfield -- where panels can be assembled and tested, before being shipped to installers across the United States. The price to installers will be at least 10 percent less than panels sold via other distributors, putting solar within the reach of more U.S. families, he said.

Unlike the European market, where only a few buyers purchase large lots of solar panels, the U.S. market "is very chaotic and disorganized," Yuan said. Nationwide, there are 25,000 solar panel installers typically placing orders of just 10 to 20 pieces, he said.

The solution, Yuan said, is to clear the path from panel production to end user, trimming costs while ensuring quality.

"Whoever can execute it fastest and streamline the supply chain fastest will win," Yuan said.

Many questions remain, however. Yuan won't disclose the names of companies in his consortium, or detail how his venture is financed or structured.

Yuan brings to this enterprise years of experience managing factories in China that produced components for such devices as Motorola phones. Most recently, he was an executive for two years at Solarfun, a major Chinese solar panel manufacturer.

As Centron's president, Yuan said he is working with more than 30 Chinese companies, including solar panel makers, that make up the consortium. Most are privately held firms operating in China's solar hub, near Shanghai, he said.

To be part of the consortium and to supply panels to Centron, members must produce panels that meet strict product specifications, plus the industry standards of Underwriters Laboratories (UL) and the California Energy Commission (CEC), Yuan said.

Centron enters the competitive solar panel market as a new entity with no track record. It's not publicly known whether Centron has the finances to proceed, or whether its strategy will succeed.

Introducing Ocean Yuan, a former English teacher in China, moved to Eugene in 1990 after meeting a Eugene woman who was traveling in China. Yuan graduated from the University of Oregon with a degree in finance in 1993.

Jim Reinmuth, former dean of the UO business school, said he met Yuan 15 years ago at the UO and has kept in contact.

"He's a very high energy guy," Reinmuth said.




(1)
 
8/4/2009 2:04:47 AM
by Concerned Citizen
Excuse me? But when was it OK for foreign interest dressed up in Centron Solar to create a pipeline of revenue directly to China? Government subsidies pay up to 60% of a solar installation for a home or business. 50% of the total cost are the panels. I do not think it is so much the cheap labor in China which determines their low pricing strategy, as much as I believe that Centron Solar investors have invested in the production cost of their panels precisesly so they can undercut current supplies of solar panels on the US market. Cutting out the middle-man? Right... if you want to buy an inverter directly from the manufacturer it is usually more expensive than buying from a distributor, why not for solar panels?

Centron Solar is BOGUS! Stay away and support your local manufacturers. Make sure that the stimulus holds its definition in terms of stimulating OUR economy, not allowing predatory foreign investment to snatch it before our very own eyes! If we did, in fact, borrow money from China for bailout and stimulus, circulating money back into China isn't going to lessen that problem in the least.
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