Qatar bails out Germany's Solarworld

Jun 18, 2013
A roof with solar panels in Grevenbroich near Aachen, southern Germany. German solar panel manufacturer Solarworld announced Tuesday a capital injection by Qatar, a move which will save the company from bankruptcy as the German sector struggles against Asian competition.

German solar panel manufacturer Solarworld announced Tuesday a capital injection by Qatar, a move which will save the company from bankruptcy as the German sector struggles against Asian competition.

Solarworld said in a statement that it had agreed several measures with its biggest creditors, including the injection by Qatar Solar in return for a 29-percent stake in the troubled company.

Solarworld founder and chief Frank Asbeck will also end up with a 19.5-percent share in the restructuring, according to the statement.

are at the heart of a current trade spat between China and the European Union, which accuses the Chinese of selling its imported solar panels below cost, a process known as 'dumping'.

Solarworld's spokesman Milan Nitzschke is president of a European federation, EU ProSun, which has fought for the EU to take action against China, and Brussels has now imposed provisional tariffs.

The investment by Qatar and the involvement of Asbeck, amounting together to a 46 million euro ($61 million) injection, in effect wipes out much of the company's debt and inflicts major losses on the company's current shareholders.

Faced with stiff competition, especially from Chinese solar panel and cell producers, the German sector, formerly the world leader in the technology, has seen several companies go bankrupt or be bought by foreign companies.

German industry flagship Q-Cells was purchased by 's Hanwha.

German engineering giant Siemens said Monday it would gradually stop its activities in —where it currently employs some 280 people—by 2014 after failing to find a buyer.

The oil-rich emirate of Qatar has a number of stakes in different German companies including BTP Hochtief and Volkswagen.

Qatar announced Monday it was selling its 10-percent stake in German luxury carmaker Porsche but would keep its 17-percent share in that company's owner VW.

Explore further: Is nuclear power the only way to avoid geoengineering?

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User comments : 3

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VendicarE
3 / 5 (2) Jun 18, 2013
Sadly Republicans prevented a bailout of American solar manufacturers that were bankrupted by the dumping of Chinese made solar cells on the american market.

So now America is hostage to Chinese Solar Cell production.

Trading away America's future was a good idea, because it scored the Republicans a few political points among the Tea-Tards.
ValeriaT
1 / 5 (1) Jun 18, 2013
Which is why Steven Chu is not in function of energy secretary anymore...;-) But Ernst Moniz is not any better with his boycott of cold fusion research.
VendicarE
3 / 5 (2) Jun 18, 2013
Chu described several broad goals that DOE's four power marketing administrations should make to upgrade their electric grid to accommodate renewable energy and improve cybersecurity.

House Republicans strongly opposed the measure and repeated their accusations Tuesday that a directive from Energy Secretary Steven Chu could hike electricity prices across several Western states

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