German Solar Energy Company Sunways has sold a 33% stake to LDK solar for around 2 million euros .Note most small German solar companies are almost insolvent and have no hopes of turnaround.Around 5000 German solar companies have closed according to BSW.Some big German companies like Solon and Solar Millennium have already announced bankruptcy.Note Chinese companies too would have shut down but the state owned Chinese banks are keeping them alive with loans at ridiculous interest rates.LDK which is buying Sunways is almost insolvent as well with its convertibles trading at less than 50c on the dollar in Singapore.It has more than n$3 billion in debt compared to its market cap of around $600 million.It faces massive losses in the coming qtrs and can’t serve the interest payments much less expand.The strong support of the Chinese government for its green companies is keeping them alive.Chinese solar panels have become super cheap due to companies selling at below cost and massive scale.Note all the cheap solar panel brands in the world are Chinese with the exception of First Solar and some Asians.
LDK has managed to spend 22 million Euros despite burning hundred of millions of dollars in cash because it has got the Chinese government trillions backing it.So while Western companies burn and crash,the big crony Chinese companies can expand and acquire.
Most of the German solar manufacturing industry is finished and it is unlikely that except a couple of them like SM Solar or Wacker will live to see 2013.Q-Cells too should go bankrupt or get consolidated .Note despite European companies shifting factories to Asia ,they just can’t compete.Some of the smaller module makers with 20 MW plants have seen huge losses with the equipment not selling for 10 cents on the dollar
Read the travails of non-Chinese companies in the following articles
Sunways AG (SWW), a German solar panel maker, rose the most in 5 1/2 months after China’s LDK Solar Co. (LDK) said it intends to take over the company.Sunways rose as much 27 percent to 1.95 euros a share, the biggest intraday jump since June 14, and was up 23 percent at 10:02 a.m. in Frankfurt. The Konstanz-based company said LDK Solar would buy 33 percent and offered to purchase the remaining stake at 1.90 euros a share. Sunways has a market value of 22 million euros ($28.5 million).