Exclusive: Canadian Solar seeing spike in European demand

Reuters News
Posted: Jan 31, 2012 3:28 PM

LOS ANGELES (Reuters) - Canadian Solar Inc is scrambling to ramp up production of solar panels to meet an unexpected surge in demand from Europe, Chief Executive Shawn Qu said on Tuesday.

German customers, in particular, have increased orders in anticipation of a reduction in the government's subsidy for solar energy in the coming months, Qu said in an interview.

"We have seen very strong demand in the past few weeks which caught us a little bit off guard," Qu said, adding that the Chinese New Year holiday had also taken a toll on the company's ability to respond to the recent surge in demand.

"There is a supply shortage going on in the past two weeks," Qu said. "At this moment we are trying to ramp up as much as possible to supply our European customers."

Canadian Solar is based in Ontario, Canada but has most of its operations in China.

(Reporting By Nichola Groom; Editing by Phil Berlowitz)