Global Solar announces German subsidiary insolvency

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The copper indium gallium diSelenide (CIGS) module manufacturer filed for insolvency with the Charlottenburg District Court yesterday, June 25. Lawyer Christian Köhler-Ma has been appointed provisional liquidator.

Global Solar added that it will still continue production at its Tucson, Arizona plant, which has a manufacturing capacity of 40 MWp. The Berlin-Adlershof-based manufacturing operations, meanwhile, will be closed down. It is not known at this time how many employees will be affected. The 35 MWp facility focused on the company’s Global Solar PowerFLEXproduct line.

In a statement released, Global Solar commented, "Under current market conditions, the Tucson facility has sufficient capacity to meet demand." It added, "Global Solar will continue to honor all of its warranty obligations and service European customers, but from its Tucson facilities."

CEO Jeffrey Britt put a positive spin on the news, stating that the decision will allow the company to address financial issues and focus on the Asian, Middle Eastern and North American solar markets.

The company added that it is also continuing to search for new investor participation. Current activities are being led by FTI Capital Advisors, LLC (FTICA).

On June 11, just before the Intersolar Europe 2012 tradeshow kicked off in Munich, pv magazine spoke with Global Solar’s chief sales officer, Jean-Noel Poirier. He said the company was seeking new investors, in order to allow it to develop its CIGS business in other directions. He added that while an ownership change could take place, it is not inevitable, but will rather depend on how much is raised and who comes on board.

As Global Solar Energy is a private company, Poirier would not reveal its revenue or annual turnover. He also would not divulge the level of investment the company is hoping to attract.