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| The headquarters of Hanwha Q Cells in Thalheim, Germany. (Hanwha Q Cells) |
Hanwha Q Cells, a Germany-based solar power business unit of Hanwha Group, announced Thursday that it would end its production operations in Germany from March 1 and relocate them to Malaysia.
The solar photovoltaic-maker will maintain its research and development operations in Germany.
“Behind the decision is weakening demand for solar cells and modules in Europe and higher labor costs than other regions,’’ a Hanwha Group official said.
The group added the restructuring of Hanwha Q Cells would have no direct relation on the merger between Hanwha Q Cells and SolarOne, both of which are key solar power business units of Hanwha Group.
Last December, the group announced Hanwha SolarOne would take over Hanwha Q Cells to seek economies of scale and facilitate expansion into important solar markets, including China.
The merger deal created the world’s largest company in solar cells with 3.28 gigawatts of PV cell production capacity.
Industry watchers, however, said the continued restructuring of Hanwha’s solar businesses reflected growing concerns over weakening demand for renewables, affected by falling oil prices.
The South Korean industrial giant has continued to invest in solar power businesses to secure a new source of profit. Hanwha has become one of the few global solar power brands offering total solar power solutions, but has yet to prove that its new business is profitable.
Kim Dong-kwan, the eldest son of Hanwha Group chairman Kim Seung-youn and the executive director of Hanwha SolarOne, has led the group’s solar businesses.
By Seo Jee-yeon (jyseo@heraldcorp.com)
