Bosch Solar Energy has completed the process to sell the production unit of crystalline photovoltaic cells and modules in Arnstadt to SolarWorld Industries-Thüringen GmbH. SolarWorld reportedly acquired the solar division for a negative sum.
Under the terms of the agreement, SolarWorld AG will take over cell production capacity of 700MW as well as module production capacity of 200MW from Bosch Solar Energy AG in Arnstadt.
Following the deal, 400 employees at the Arnstadt location will lose the job. Nearly 800 of the employees will be transferred to SolarWorld. Bosch will also employ approximately 250 associates at the Arnstadt location, the company said.
Last year, Bosch Solar Energy shut down its solar business division after it failed to maintain a competitive position in the market thanks to overcapacity and price declines. Since then the company has been keen to sell its individual business units.
As per January 2013 reports, Bosch’s solar energy division suffered a loss of approximately US$1.3 billion, according to industry reports.
From the autumn of 2014, Bosch will also be manufacturing an automotive electronic product in Arnstadt, the company said.
SolarWorld is a German manufacturer of PV products. The company follows an unsustainable business model in which it manufactures high cost solar panels in Europe and USA. It has been running into liquidity issues. A large cash infusion by a Qatari fund helped the company save from bankruptcy.
In its preliminary 2013 financial results, SolarWorld reported consolidated revenue of €456 million (US$631 million), down 25 percent from the previous year when revenue fell to €606 million (US$839 million). Revenue was over €1 billion (US$1.4 billion) in 2011.
Following the acquisition of Bosch Solar Energy solar unit, SolarWorld will have production capacities of more than 1 gigawatt along each of the wafer, cell and module stages of the solar value chain.