Solarwatt may close German plant amid Chinese competition - report

Solar panel manufacturer Solarwatt may have to shut down its factory in Dresden, Germany, if the government does not find a solution against unfair competition from China, chief executive Detlef Neuhaus told business newspaper Handelsblatt.

According to Neuhaus, Chinese manufacturers are selling 20% below their production costs. Consequently, prices have fallen by over 50% within the last six months.

Solarwatt will keep production running in the first half of 2024, the CEO said in an interview published on Monday. However, if no political measures are taken by the middle of the year, the company will have to consider the discontinuation of its production in the country.

The statement was made soon after German economy minister Robert Habeck indicated at the Handelsblatt Energy Summit his willingness to support local solar manufacturers. However, the timing and nature of government support are still uncertain.

Solarwatt already reduced its workforce by 85 in 2023 as the company streamlined its operations amid pressure from Chinese and US competition.

In case of withdrawal from production, Solarwatt will focus on its business related to energy management solutions, the CEO told Handelsblatt.

The statement was made about a week after Swiss solar products manufacturer Meyer Burger Technology AG (SWX:MBTN) revealed plans to shut down its solar module factory in Germany due to the deteriorating European market. The decision marks another setback for the German sector after photovoltaic (PV) inverter maker SMA Solar Technology AG announced in December an intention to open a 3.5 GW production plant in the USA.

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