(Bloomberg) -- China’s beleaguered solar industry, wracked by a glut and fierce price war, is already on the road to recovery, according to one of the country’s largest panel manufacturers.

“We’re at a turning point,” Li Zhenguo, founder and president of Longi Green Energy Technology Co., said in an interview. “It will take two to three quarters for the product price to rise above cost level, and we already saw bidding prices rise somewhat from last month.” 

Massive overcapacity in China’s world-leading solar industry has forced some firms into bankruptcy or restructuring and resulted in big losses at major manufacturers. Longi, which used to be the country’s biggest panel producer before the current crisis, has posted four straight quarterly losses and resorted to slashing staff and costs.

The China Photovoltaic Industry Association, the country’s main solar industry body, called in October for rational pricing and urged companies to be more disciplined in bidding for projects. The group also said struggling manufacturers should exit the market as soon as possible.

“We don’t think the current situation is sustainable for the sector, and the whole industry is also doing a lot of soul-searching on why the situation has happened,” Li said from the Peruvian capital of Lima, where he was attending the Asia-Pacific Economic Cooperation forum. The sector should take the initiative to “limit capacity a little to let the price return to a rational level,” he said.

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