Industrial success demands careful mix of conditions

To outsiders, Eifesun entered the industry at a strange time, when there was already an over-supply of photovoltaic components in the market.

Most photovoltaic companies were State-owned, receiving huge amounts of investment from the government.

In 2009, the international community was also building a number of trade barriers against Chinese PV producers, including the opening of countervailing and anti-dumping cases by the United States and the European Union.

But Eifesun saw a gap in the market, and turned to the production of photovoltaic grid-connected inverters, specific products which require much more technology and involve much added value.

However, difficulties arose in 2012, when a credit crisis broke out in Wenzhou, resulting in many SMEs finding it difficult to get loans.

Technology companies found it especially difficult, but luckily, the local government was there to help.

With favorable regulations, Eifesun's bank credit was actually expanded. More than 100 million yuan has now been invested into the company, but Eifesun still has only a 50 million yuan bank loan.

"Without the government's help, we would have shut down a long time ago," said Zhang.

In cooperation with Wenzhou Science and Technology Bureau, Eifesun was awarded major government science and technology projects by district, municipal, provincial and finally national level authorities over three years, which together helped to attract around 5 million yuan of special support funding.

Favorable policies

In the meantime, the local government also announced plans to build the city's own photovoltaic power station, in its efforts to promote the use of green energy.

"Money can be exhausted very quickly, but favorable government policies have an enduring effect," said Zhang.

Baoyi Group is based in Yongjia county of Wenzhou, and Eifesun could have located there too. But the zone provided a better industrial environment, said Zhang.

"In our first year here, the rental was 8 yuan per square meter a month, while the market price should be as much as 40 yuan per sq m," he said.

Being near the Wenzhou Financial Reform Plaza also helped, he said.

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