UPDATE 2-Trina Solar plans overseas plants to bypass U.S. duties

Tue Aug 26, 2014 12:45pm EDT
 
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* Sees robust demand from the United States despite tariffs

* Q2 shipments rise 69 pct vs Q1, expected to rise in Q3

* Q2 revenue rises lower-than-expected 18 pct

* Shares fall as much as 10 pct (Adds CFO, analysts' quotes; details, background)

By Shubhankar Chakravorty

Aug 26 (Reuters) - Trina Solar Ltd said it was working on plans to set up manufacturing sites overseas, becoming the latest Chinese solar company looking to work around U.S. tariffs on solar products made in China and Taiwan.

Trina Solar's shares fell nearly 10 percent in morning trade after the company also reported a lower-than-expected rise in quarterly revenue and outlined plans for new plants - a move that could hike costs.

The United States last month extended duties to solar products made in Taiwan, plugging a loophole that allowed companies to bypass duties on China-made products by moving manufacturing to Taiwan.

Trina Solar pays tariffs of 23 percent on its China- and Taiwan-made products, lower than the industry average of about 31 percent. Tariffs vary depending on the U.S Department of Commerce's evaluation of the extent to which a company engages in "dumping" practices.   Continued...