The world’s largest solar panel maker, China’s Suntech Power, put its Wuxi subsidiary into bankruptcy following poor sales and sanctions on the company, reports CNN Money:
Last week, the company missed a payment on $541 million in debt, and the company’s CEO said he was exploring strategic alternatives. According to state-run news agency Xinhua, the company owes nine creditor banks a total of $1.2 billion. […]
The U.S. Commerce Department announced stiff tariffs on Chinese-made solar panels last year, after finding that Chinese solar cell manufacturers were “dumping” their products on the American market below production costs.
The issue divided the U.S. solar industry, with some manufacturers complaining that Chinese trade practices were driving prices down artificially and smothering U.S. production.
Parent company, Suntech Power, will not file for bankruptcy. Chinese solar panel manufacturers are not alone in having difficulty staying afloat: American solar company Solyndra failed in 2011. Solyndra filed for bankruptcy two years after receiving a $535 million taxpayer-guaranteed loan.