A fire broke out at one of JinkoSolar‘s silicon wafer slicing and solar cell manufacturing facilities in Shanxi Province, China, on April 26.

While no casualties were reported, JinkoSolar stated that the incident could impact its operations and 2024 financial results. The solar manufacturer is shifting production across their other manufacturing sites to minimize disruptions to its supply chain.

JinkoSolar, one of the world’s largest solar module makers, maintains property and equipment insurance coverage at the Shanxi plant. The company has begun filing insurance claims related to the fire, though the cause remains under investigation.

The Chinese solar manufacturer operates 14 production facilities globally, along with 26 overseas subsidiaries spanning North America, Europe, Asia, Africa, and South America as of the end of 2023.

JinkoSolar provided no other details about the extent of the damage or potential financial impact.

In May last year, Jinko Solar’s majority-owned subsidiary, Jiangxi Jinko Solar, had proposed plans for production lines with an annual capacity of 56 GW to manufacture monocrystalline silicon pull rods, silicon wafers, high-efficiency solar cells, and modules. The cell and module manufacturer had entered into an investment framework agreement with the Transformation Comprehensive Reform Demonstration Zone of Shanxi Province in China.

The company recently suffered a 44% drop in its first-quarter profit as falling module prices hurt its margins. Module prices have steadily fallen since last year owing to China’s industrial overcapacity.

Lower profits were despite total solar module shipments rising 53.3% from the prior year. The company shipped nearly 20 GW of modules in the quarter.

Previous fires have caused prices to rise (polysilicon) but module prices are unlikely to be affected by this incident due to extreme overcapacity in the market.