in Germany, one of the largest solar panel factories in Europe folds in the face of Chinese competition

The Meyer Burger factory in Freiberg, near Dresden, has temporarily stopped its activity but the shutdown could be permanent.

At the Meyer Burger solar panel manufacturing plant in Freiberg, near Dresden, in eastern Germany, all we can hear is the hum of a few machines and the hiss of ventilation devices. Just a few days ago, 5,000 solar panels were produced daily in the immense workshop which stretches over 300 meters. But the factory, which was presented as the company of the future when it opened three years ago, had to stop its activity.

Faced with Chinese competition which has caused prices to collapse, the German solar industry is suffering and the Meyer Burger group has just announced losses of 300 million euros for the year 2023. The group is holding a meeting on Monday March 18 extraordinary general meeting. For the moment, the shutdown of the Freiberg factory, one of the largest in Europe in the sector, is temporary but it could become permanent.

“Before, the machines worked 24 hours a day, seven days a week”, says Max Lange, one of the 500 employees. In front of him, stored on carts, the last solar panels manufactured before the factory shut down are waiting to be shipped. “When we see the machines stopped and we no longer make anything, it feels strange. We all hoped that it could continue. When we are forced to stop because of external circumstances, it’s a hard blow .”

The central issue of subsidies

For a year, China has been flooding the European market with its solar panels. The products are sold three to four times cheaper than those of German manufacturers. “It’s unfair competition. It’s not a game of equalslaments Ronald Müller, the production director. It’s unfair because we have to bear all the costs of producing a solar module while they are subsidized by the state in other countries. Here we must respect European standards and legislation. Our machines are three years old. This is the latest technology. It’s really a waste of money.”

The German manufacturer is now planning to strengthen its business in the United States, where conditions are more favorable thanks to the generous subsidies granted to the solar industry since 2022. But Wolfram Günther, the energy minister of the Saxony region, hopes more help from the government to save the company: “All over Europe, we are seeing an explosion in solar panel installations. So destroy our own national industry to become almost 100 % dependent on China, this is not responsible. We have already experienced this with Russia and gas and we see where it has taken us. It is not only the solar industry in Germany that is in danger, but the solar industry in Europe. We absolutely must act quickly.”

If no public aid is announced by the end of the week, the Freiberg factory should close its doors permanently. Less than three years after its inauguration with great fanfare.