Creditors will allow Solarworld Americas to borrow more than $5 million. This should bring operations up to full capacity in the coming months.
Solarworld Americas, the U.S. subsidiary of German solar manufacturer SolarWorld AG, has received a green light from its creditors for another $5 million loan. The funds will be used, the company said, to finance current operations. The company added it aims at fully utilizing its production capacity by the third quarter, and to hire around 200 new employees.
The company, which currently employs about 300 people, said it expects to return to profitability thanks to the new funds in the future.
“With this latest cash infusion, our creditors are demonstrating their confidence in our company and its outlook for growth,” said SolarWorld Americas CEO, Juergen Stein.
Creditors had previously granted another loan of $6 million, while allowing $6 million in proceeds from the sale of a warehouse building to be used for operations.
Solarworld Americas has also highlighted the positive impact of U.S. President Donald Trump’s decision in the Section 201 petition. Suniva had filed the lawsuit, which was later joined by Solarworld Americas and First Solar as co-petitioners. Just a few weeks ago, President Trump imposed 30% tariffs on imported solar modules and cells from most countries.
The market has responded well to the duties, Stein explained. Associations such as the U.S. Solar Energy Industries Association (SEIA), however, see the tariffs as negative and expect a resulting slump in the solar market.
After the insolvency of Solarworld AG in mid-2017, the U.S. subsidiary is still looking for an investor. In particular, the decision of the Trump government was considered decisive for the investor talks.
“As for now, there are concrete offers from five investors,” said a spokesman for the law firm Piepenburg-Gerling Rechtsanwälte to pv magazine.