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Solar: Ongoing price war makes Germany-based SolarWorld AG bankrupt

Solar world bamcrupt

Solar World AG bankrupt

Solar price war creates a non sustainable industry

Amidst harsh price wars in the solar module maker space, Germany-based SolarWorld AG has filed for bankruptcy.

“Due to the ongoing price erosion and the development of the business, the company no longer has a positive going concern prognosis, is therefore over-indebted and thus obliged to file for insolvency proceedings,” SolarWorld said in a statement on Wednesday..

Over the past 5 years, SolarWorld has, according to Renewable Energy World, filed multiple trade complaints and anti-dumping lawsuits against Chinese PV manufacturers, which resulted in tariffs being put on certain panels that were manufactured in regions of Asia.

The topic of cutthroat pricing and unsustainable business practices has been explored by industry expert Paula Mints. In February she explained how PV module prices as low as US 0.25 per watt were impacting the industry.

SolarWorld is the latest victim of the ongoing unforgiving pricing environment,” said Mints who added that when companies are trying to compete with prices that do not appropriately reflect cost, the market becomes uncompetitive. She is concerned that when manufacturers fail, innovation is also lost and quality takes a back seat to low-cost.

@This article is published by conbio.info 2017-05-12 and edited by Lennart Ljungblom. conbio.info is focusing on news with impact on bioenergy business and also bioenergy news with impact on society and other relevant areas, on line since 2013.

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