SolarWorld
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
SolarWorld was a Bonn-based German manufacturer of solar panels and cells, founded in 1988 (transferred to SolarWorld AG in 1998, listed in 1999). At its peak it was one of the world's three largest solar companies, with plants in Germany and Hillsboro, Oregon. It raised about $1 billion in total.
02 / SolarWorld FAILURE REASONS
Failure reasons
SolarWorld was crushed by plummeting prices from intense Chinese competition. Despite winning US and EU anti-dumping tariffs against Chinese panel imports, Chinese manufacturers routed production through third countries (Malaysia, South Korea, Taiwan) not covered by the tariffs. The company could not cut production costs enough: full-year 2016 revenue was €803 million but EBIT loss reached €98.8 million. The $793 million Hemlock polysilicon contract dispute added pressure. In May 2017, declaring itself over-indebted, SolarWorld filed for insolvency—founder Frank Asbeck called it 'a bitter step for the German solar industry.' A 2017 asset sale (SolarWorld Industries GmbH) collapsed again: the successor filed for insolvency in March 2018 and the Freiberg module factory was auctioned off.
03 / EVENT HISTORY
Events in the structured record
- SolarWorld AG
Activities transferred to SolarWorld AG; listed 1999; grows to one of the world's three largest solar companies.
- Losses mount
Full-year 2016: revenue €803M, EBIT loss €98.8M; layoffs of 500 workers announced; company unable to meet revenue forecasts.
- Insolvency
May 2017: SolarWorld files for insolvency, citing price erosion from Chinese competition. Founder Asbeck and Qatar Solar Technologies buy the assets as SolarWorld Industries GmbH, leaving liabilities behind.
- Second collapse
March 2018: the successor SolarWorld Industries GmbH files for insolvency again; investor search fails and the Freiberg factory equipment is auctioned off. SolarWorld Americas is sold to SunPower in April 2018.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
FY2016: revenue €803M; EBIT loss €98.8M (~US$109M at 2016 average EUR/USD 1.107).
- 02
May 2017: insolvency filing (over-indebted).
- 03
Aug 2017: assets bought by Asbeck/QSTec as SolarWorld Industries GmbH.
- 04
Mar 2018: second insolvency; factory auctioned; SolarWorld Americas sold to SunPower.