Germany photovoltaic firm Sovello to end production, 1,000 jobs hit

21 August 2012 17:27  [Source: ICIS news]

LONDON (ICIS)--Insolvent German photovoltaic firm Sovello will end all production on 27 August, affecting a total of about 1,000 jobs, the company’s insolvency administrator said on Tuesday.

“To continue production would just lead to increased losses,” said administrator Lucas Flother.

Sovello, a large integrated manufacturer of solar modules, filed for insolvency in May but had continued part of its production.

Germany’s solar industry has seen a number of high-profile insolvencies amid tough international market competition, overcapacities, pricing pressures and cuts in government subsidies for the sector.

Flother said he would try to find a buyer for the company, despite the tough conditions in Germany’s photovoltaic industry. Also, the government of Sovello’s home state of Saxony-Anhalt had promised to help the workers, he added.

Erhard Koppitz, a regional leader for chemical and energy union IG BCE said that the union was appealing to chemical and energy firms in Saxony-Anhalt to employ the Sovello workers.

The state is home to three large chemical production parks - Bitterfeld Wolfen, Leuna, and Dow Chemical's "Valuepark" in Schkopau.

IG BCE is also calling on Germany's federal government to provide financial aid for the solar industry, Koppitz said.

By: Stefan Baumgarten
+1 713 525 2653

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