Solar energy maker Q-Cells Group files for insolvency

Solar energy maker Q-Cells Group files for insolvency German-based Q-Cells Group SE, which owns a production facility in Malaysia employing some 500 staff, yesterday filed for insolvency, raising questions about the health of other solar energy businesses locally at a time when Malaysia is upping the ante on the sector. Falling purchase prices for silicon and wafers could only partly compensate for the significant fall in selling prices for solar cells and modules. In Q-Cells 2011 annual report, it noted that the expected boom in the photovoltaic industry following the decision for an energy turnaround in Germany and the global debate on expanding the use of renewable energy after the tragic reactor accident in Fukushima largely failed to materialise. Chinese companies supply about half of the world's solar cells and have 45% of polysilicon production capacity and have expanded speedily in recent years, according to a Bloomberg report in mid-February, adding that Q-Cells, the German solar cell maker that once was the world's biggest producer, earlier this month refinanced debt to avoid bankruptcy. "These significant price declines had a negative impact on Q-Cells' sales and results. The facility is located on a 30,000 sq m plot in Selangor Science Park II, Cyberjaya. Instead, it added that rapid increase in excess production capacities and Asian competitors in particular caused prices to fall 40% to 60% in the course of the year, especially for solar cells and modules. Excess capacity cut the price of solar panels in half last year, depressing margins and prompting 15 of the 17 members of Bloomberg Large Solar Index to post quarterly losses. "Even though we rapidly cut our production of solar cells and modules in Germany and Malaysia, this was not enough to prevent Q-Cells from reporting extremely weak results in the first-half of the year. In its firm report released in September, Q-Cells chief executive officer Dr Nedim Cen said it was then developing its Malaysian site into a sales hub for Asia and had achieved its first sales success in the country. There was no immediate news on the fate of the staff at the Malaysian production facility, which was formed in June 2008. On production at the Malaysian plant, the same report said that efficiency and throughput improvements had increased production capacities in Malaysia from 600MW peak (MWp) to 650MWp as of the end of the third-quarter of 2011. Solar cell prices more than halved last year and the average spot price for polysilicon has tumbled 59% from 12 months earlier to US$29. At press time, The Malaysian Reserve was not able to reach Q-Cells Malaysia managing director Franz Vollman. 26) a kilogramme, the report added, quoting New Energy Finance. The market recovery in the thirdand fourth-quarters of 2011 failed to enhance the overall operating results for the year," it said. Solar energy maker Q-Cells Group files for insolvency Trade News selected by Local Linkup on 07/04/2012