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Shares of Chinese solar products maker JinkoSolar Holding Co. Ltd. rose Tuesday after it resumed production at a plant it closed because of a chemical spill.
THE SPARK: JinkoSolar said Tuesday that production restarted at its solar panel plant in Haining in Zhejiang Province, China. The plant was closed for more than three weeks because of a suspected fluoride leak from the facility.
THE BIG PICTURE: In September, villagers in eastern China protested for days against pollution that they blamed on JinkoSolar's factory. The company responded by closing the plant Sept. 17.
JinkoSolar said that fluoride was released from the plant and into a waterway because of extreme weather. The company said it has since upgraded the plant.
THE ANALYSIS: Collins Stewart analyst Dan Ries said the company now needs to rebuild its reputation with customers.
"In a `green' industry, buyers will put a company with an environment accident in the penalty box," Ries said in a note to clients.
Ries believes that the company will be able to rebuild its reputation, but it "will take time."
A JinkoSolar representative could not be immediately reached for comment.
SHARE ACTION: JinkoSolar shares rose 38 cents, or 5.6 percent, to 7.09 in afternoon trading Tuesday. Its shares are down 83 percent since they reached a high of $41.75 on Nov. 4, 2010.