News Article
Global Solar Energy German subsidiary applying for insolvency
The fully owned subsidiary of the firm will no longer operate the CIGS 35 MWp Berlin, Germany production facility
Global Solar Energy has announced that the German executive team applied for insolvency proceedings at Global Solar’s wholly owned German subsidiary, Global Solar Energy Deutschland GmbH (GSED).
The GSED operations focused exclusively on the Global Solar PowerFLEX product line. Under current market conditions, the company believes its Tucson facility has sufficient capacity to meet demand.
U.S.-based Global Solar is consolidating operations and focusing on growth segments through its 40 Megawatt (MWp) Tucson, Arizona factory.
Discussing the German proceedings, CEO DJeffrey Britt states, “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 fulfil our business plan. Global Solar will continue to honour 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.
With these strategic changes put into effect, Global Solar will also continue to pursue new investor participation, being led by FTI Capital Advisors, LLC (FTICA), member FINRA/SIPC, the wholly owned investment banking subsidiary of FTI Consulting, Inc.
