(Yicai Global) July 28 -- Shares of Trina Solar, the world's second-biggest supplier of photovoltaic components, climbed after the Chinese company said legal action taken against its US unit over undelivered orders due to US trade barriers would not affect production and operations.

Trina Solar [SHA: 688599] closed 4.5 percent higher today at CNY83.76 (USD12.41), after earlier jumping by as much as 5.7 percent.

TotalEnergies Renewables USA, Danish Fields Solar, Skysol, Ellis Solar, and Myrtle Solar are suing Trina Solar US, claiming it failed to deliver PV parts, breached contracts and acted fraudulently, its Changzhou-based parent company said in a statement yesterday.

The plaintiffs claim they lost about USD200 million because of Trina Solar, which said the judicial proceedings are expected to take more than three years.

In July 2021, Trina Solar and TotalEnergies signed a USD300 million deal according to which the Chinese firm was to supply 900 megawatts of solar modules between February and December this year. TotalEnergies Renewables, a unit of French energy giant TotalEnergies, made a USD8.8 million deposit.

In March, the US Department of Commerce and Department of Homeland Security launched investigations into solar products from Malaysia, Thailand, Vietnam, and Cambodia for alleged circumvention of US tariffs, after PV parts maker Auxin Solar claimed producers from these countries used materials and parts provided by Trina Solar and other Chinese firms.

Because of the investigations and the Withhold Release Orders issued by the US Customs and Border Protection, the parties were forced to renegotiate delivery details but failed to reach an agreement, Trina Solar said.

Since last year, a number of Chinese solar firms have been impacted by the WRO, with products temporarily seized by law enforcement. So far, Trina Solar is the only one to have made an announcement regarding a lawsuit.

Trina Solar delivered 24.8 GW of components last year, making it the world's second-biggest PV components vendor.

Editor: Futura Costaglione