The sole European solar glass manufacturer, GMB Glasmanufaktur Brandenburg GmbH (GMB), is facing difficulties due to competition from low-priced Chinese products and a decline in demand. The company has applied for short-time work subsidies, a benefit provided by the German government to support businesses and employees during economic downturns, which results in reduced working hours and salaries for staff.
GMB, part of the Interfloat Group, is 86% owned by Indian solar glass manufacturer Borosil Renewables since October 2022, with the remaining shares held by Blue Minds Company. According to Ashok Jain, a director at Borosil, during an earnings call for the second quarter of fiscal year 2024, GMB’s operations in Germany face significant challenges. Local demand is only 40% of capacity, and while the factory maintains high production utilization through orders from the United States and the European Union, these orders are priced lower and cannot fully fill the demand gap.
Jain noted that although France, Italy, and Austria have taken measures to support domestic component manufacturing, these policies have not yet significantly impacted overall demand, and Germany is still evaluating relevant policies. Due to the lack of basic customs duties (BCD) or anti-dumping protection in Germany and the EU, local market demand is suppressed, and many downstream local customers have exited the market.
Jain added that due to higher production costs in Europe, the company currently has no intention to outsource production in Germany.
In contrast to the German market, Borosil’s market demand in India continues to grow. The company announced an expansion of its capacity from 1,000 tons per day to 1,500 tons per day, primarily driven by the Indian Finance Ministry’s setting of import reference prices to curb cheap dumping imports from China and Vietnam.
Gunter Erfurt, former CEO of Meyer Burger, criticized German policies on LinkedIn for not adequately supporting local industries to compete with highly subsidized Chinese products. He stated, “Solar energy is the new oil, and we are 100% dependent on China. This is madness!”
In response, Pradeep Kheruka, chairman of Borosil, expressed hope that the new German government will provide a clear policy direction for local production of renewable energy equipment.
