NorSun, a European manufacturer of monocrystalline silicon ingots and wafers, has announced the permanent closure of its factory in Årdal, Norway, and filed for bankruptcy. Simultaneously, the company stated its focus on advancing a 5GW annual capacity silicon wafer factory project in the United States. This decision marks the exit of another European photovoltaic enterprise from the local market due to market difficulties.
NorSun’s Årdal factory ceased operations in September 2023 due to insufficient demand in the European market and the impact of low-priced Chinese inventory. Now, the company has made it clear that oversupply in the European market and the lack of effective market protection policies have made factory operations unsustainable. According to NorSun’s official statement, “The selling price in the European market is below production costs, coupled with inadequate regulations, leading to the closure of many solar energy enterprises, and our customer base has also shrunk significantly.” Erik Løkke-Øwre, CEO of NorSun Holding, added, “Oversupply and the lack of policies in the European market are the main reasons for our exit from the Norwegian market.”
Facing challenges in the European market, NorSun has decided to invest resources in the field of photovoltaic manufacturing in the United States. The company plans to build a 5GW annual capacity silicon wafer factory in Tulsa, Oklahoma, and has reached an agreement with EPC contractor Clayco to start construction in 2025, with an expected commissioning date in 2026. NorSun stated that it has signed sales contracts for the full capacity of the factory and supply contracts for key production equipment. The final investment decision for the project will be announced in the first quarter of 2025.
NorSun’s exit from the European market is not an isolated case. In August 2023, another Norwegian silicon wafer manufacturer, Norwegian Crystals, filed for bankruptcy due to market downturns. In 2024, European photovoltaic module manufacturer Meyer Burger closed its module factory in Germany and shifted to the US market for development. However, Meyer Burger has also encountered difficulties in the US market and is currently renegotiating cooperation agreements with customers.
