China's solar companies in Europe are considering the transfer of their factories overseas to avoid import taxes being imposed by the European Union.

Europe had set an 11.8% provisional tariffs on solar goods, which is seen to quintuple in August.  According to sources, the levies are expected to jump to a range of 37.2% to 67.9%, adding that the EU governments have until Dec. 6 to finalize the provisional duties into "definitive" measures.

Among the Chinese companies that are preparing to transfer their manufacturing abroad are Trina Solar Ltd., Jinko Solar Holding Co. (JKS) and Canadian Solar Inc. ICSIQ).   

According to a Jinko official, the company is setting up plants in South Africa and Portugal that could be used as back-up, depending on how high the EU will raise its duties. Canadian Solar Inc., on the other hand, may open factories in Taiwan, Malaysia or Thailand.  Meanwhile, Trina Solar Ltd., the world's second biggest module maker, has the option to move shop elsewhere.

The solar goods industry, which generated $168 billion of export and imports in the first four months of the year, had been threatened by the growing tension between China, the largest solar products maker, and Europe. Last year, the industry generated about Eur434 billion, according to European Commission data.