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Quasi Bankrupt Solarworld buys a Solar Plant in Germany

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Solarworld to buy A Solar Plant

German solar cell and module makers have been completely vanquished by the onslaught of giant low cost Chinese solar panel Solar Panelsmakers. Their cost structures are too high for them to compete with the Asian producers. Solarworld is the last big surviving German solar panel producer with others such as Solon, Q-Cells, Sunways etc. being a part of the history books. Even Solarworld is facing a tough time in making interest payments these days. However, support from cash rich Qatar has allowed the company to continue. However, I am not sure how long the company can continue with its high cost factories in the USA and Europe. Even as most of the solar stocks have surged to new highs, Solarworld remains near the penny euro levels.

Now Solarworld is buying another 700 MW cell factory in Germany from Bosch. Note Bosch has exited the solar business like Siemens. Bosch has diversified into solar energy during the solar boom period by buying a couple of pure play German Tier 2 cell and module makers. However, the company was never able to succeed and after wasting billions of euros decided to exit the business. The company is now selling its plant in Germany to Solarworld. I am not sure what Solarworld will do with this plant and its 1800 employees. Even with China and Europe agreeing to quotas and a floor price for solar panels, European factories cannot make solar cells and panels to compete effectively.

ET

Germany’s SolarWorld said it agreed to buy one of Bosch’s solar panel plants in a bid of the car parts supplier to cut its losses in the solar sector.¬†SolarWorld will take over cell production capacity of 700 megawatts (MW) as well as module production capacity of 200 MW from Bosch Solar Energy in Arnstadt, SolarWorld said in a statement.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

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