Germany’s Bosch delays Malaysia photovoltaic investment

07 February 2012 16:08  [Source: ICIS news]

LONDON (ICIS)--Germany’s industrial group Bosch is delaying a planned €520m ($684m) photovoltaic investment in Malaysia because of price pressures and overcapacities in the solar industry, an executive said on Tuesday.

Bosch announced the project at Penang in June last year, with construction scheduled to start by the end of 2011 and production due to begin by the fourth quarter of 2013. 

However, Siegfried Dais, Bosch’s deputy CEO, told German daily Frankfurter Allgemeine Zeitung in an interview and that the company has delayed until the end of 2012 a decision on when it will start construction at the project and which technology it will employ.

Dais said the project could only go ahead if it meets its “cost targets.”

Bosch, a large automotive supplier, entered the solar industry in 2008 and has since then invested some €2bn in the sector. 

However, like others in the industry, Bosch‘s solar operations have come under pressure amid falling prices and excess capacities, especially because of competition from China-based suppliers.

Dais said the solar industry was in a consolidation phase. In five years, there would only be about 20 large suppliers on the market, he predicted.

“I can’t tell you where Bosch will rank in the industry then, but I can tell you that we will want to belong to those firms that are profitable,” he added.

($1 = € 0.76)

By: Stefan Baumgarten
+1 713 525 2653

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