Robert Bosch announced it will sell or close its solar energy operations, which made the company lose 2.4 billion euro until now.
Robert Bosch’s announcement is the latest blow for the German industry, as the country already started to reduce green energy subsidies, while cheap imports from China flood the region. Since 2008, when Bosch created the solar energy unit, the company lost 2.4 billion euro ($3.10 billion), from which 1 billion euro was lost in 2012.
The money-losing solar energy has 3,000 employees and Bosch announced that it will end solar panel production at the beginning of 2014 and begin to sell parts of the business. This is another blow for the solar energy industry in Germany, after Q-Cells filed for insolvency in 2012 and SolarWorld and Conergy are in debt restructuring talks.
“This is possibly the most painful experience that I have had to endure in my professional career,” said Chairman Franz Fehrenbach in a statement.
It’s been years since Germany has been offering big subsidies to encourage consumers to give up on nuclear and fossil fuel and turn to renewable energy. Now the country deals with overcapacity in the industry and wants to reduce expansion of the solar power after capacity was increased with a record 7,500 megawatts in 2011.