The Only PV Glass Company in Europe Reduces Working Hours Due to Insufficient Demand

GMB Glasmanufaktur Brandenburg GmbH (GMB), the only solar glass manufacturer in Europe, is facing difficulties due to competition from low-cost products from China and declining demand. The company has applied for short-time work subsidies.

Short-time work subsidies are a benefit provided by the German government during economic downturns to support businesses and employees, with working hours and salaries being correspondingly reduced.

It is understood that GMB is part of the Interfloat Group and has been 86% owned by Indian solar glass manufacturer Borosil Renewables since October 2022, with the remaining shares held by Blue Minds Company.

According to Borosil Director Ashok Jain's remarks during the Q2 FY2024 earnings call, GMB's operations in Germany are facing significant challenges. Local demand accounts for only 40% of capacity. Although the plant has maintained a high production utilization rate through orders from the US and the EU, these orders are priced lower and cannot fully bridge the demand gap.

Jain noted that while France, Italy, and Austria have implemented measures to support domestic module manufacturing, these policies have not yet had a significant impact on 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 has been suppressed, with many domestic downstream customers exiting the market.

Jain added that, given Europe's higher production costs, the company currently has no intention of outsourcing production in Germany.

In contrast to the German market, Borosil's market demand in India continues to grow. The company announced plans to expand its capacity from 1,000 mt/day to 1,500 mt/day, driven primarily by the Indian Ministry of Finance's introduction of import reference prices to curb low-cost dumping imports from China and Vietnam.

Former Meyer Burger CEO Gunter Erfurt criticized Germany's policies on LinkedIn for insufficient support of the local industry, making it unable to compete with China's highly subsidized products. He stated: "Solar is the new oil, and yet we are 100% dependent on China—this is madness!"

In response, Borosil Chairman Pradeep Kheruka expressed hope that the new German government would provide clear policy direction for local capacity in renewable energy equipment.