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: Shedding light on solar power

add to favorites email to friend print save as pdf

Related Stories

China solar industry rejects US anti-dumping probe

Nov 29, 2011

Chinese solar panel makers on Tuesday rejected an anti-dumping complaint filed in the US by competitor SolarWorld, saying it risked "seriously hindering the development of green energy."

Bosch to abandon solar energy business

Mar 22, 2013

(AP)—German engineering company Bosch said Friday that it is abandoning its solar energy business, because there is no way to make it economically viable amid overcapacity and huge price pressure in the industry.

China launches probe of European solar silicon

Nov 01, 2012

China announced an anti-dumping probe Thursday of European exports of polysilicon used in making solar panels, adding to a flurry of trade disputes with the European Union and the United States.

China rejects US ruling in solar dumping case

May 18, 2012

(AP) -- China's government on Friday rejected a U.S. antidumping ruling against its makers of solar power equipment and Chinese manufacturers warned proposed punitive tariffs might hurt efforts to promote clean energy.

EU probes Chinese solar panel 'dumping' claim

Sep 06, 2012

The European Commission launched an anti-dumping probe into Chinese solar panel imports Thursday, upping the ante in a major trade dispute Beijing insists should be solved by discussion.

China to overhaul struggling solar panel industry

Dec 20, 2012

(AP)—China's government says it will encourage mergers among producers of solar panels to strengthen an industry that has suffered huge losses due to excess production capacity and price-cutting wars.

Recommended for you

Can we create an energy efficient Internet?

9 minutes ago

With the number of Internet connected devices rapidly increasing, researchers from Melbourne are starting a new research program to reduce energy consumption of such devices.

Shedding light on solar power

21 hours ago

Everyone wants to save energy, but not everyone knows where to start. Grid Resources, a startup based out of the Centre for Urban Energy's iCUE incubator, is developing a new website that seeks to help homeowners ...

Energy transition project moves into its second phase

21 hours ago

Siemens is studying new concepts for optimizing the cost-effectiveness and technical performance of energy systems with distributed and fluctuating electricity production. The associated IRENE research project ...

Smart data increases the efficiency of wind farms

Nov 27, 2014

Siemens monitors thousands of wind power plants around the world to operate them as efficiently as possible. The company recently opened a remote diagnostics center in Brande, Denmark, where sensor data from ...

User comments : 3

Adjust slider to filter visible comments by rank

Display comments: newest first

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

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.