Global Solar Energy Deutschland GmbH applied for insolvency
Tucson, USA – Global Solar Energy announced that the German executive team applied for insolvency proceedings at Global Solar’s wholly owned German subsidiary, Global Solar Energy Deutschland GmbH (GSED).
Global Solar will continue to produce all product lines at its Tucson, Arizona factory. The GSED operations focused exclusively on the Global Solar PowerFLEX™ product line. Under current market conditions, the Tucson facility has sufficient capacity to meet demand. As a result of the GSED actions, the Company will no longer operate the 35 MWp Berlin, Germany production facilities.
Discussing the German proceedings, CEO Dr. Jeffrey Britt stated, “The EU renewables market is financially challenging due to high inventories, collapsing prices and significant reductions to European feed-in-tariffs. As a result of this difficult operating environment, a strategic decision has been made to plan and execute an EU capacity reduction and focus investment on the products and technology necessary to meet our customer’s needs and fulfill our business plan. Global Solar will continue to honor all of its warranty obligations and service European customers, but from its Tucson facilities."
“While unfortunate, the Berlin facility shutdown provides an opportunity to address financial structure issues, appropriately scale production capabilities and align with growing markets in Asia, the Middle East and North America. We continue to provide our customers with industry leading products, superior service and competitive pricing, while also ensuring the long-term success of Global Solar,” continued Britt.