Abound Solar Finances Under Investigation
DOE-loan recipient filed for bankruptcy in June
BY: Washington Free Beacon Staff
October 8, 2012 3:22 pm
The finances of a solar company that received $68 million in federal stimulus money are now under investigation in Colorado, reports ABC Denver:
I’ll just add some of my comments.
After all the rage about solar companies, where Obama succumbed to one of his worst losses — or “bets”– the industry is on the move once again. But not in an upward “can’t fail” way.
Months back, large solar companies in Europe were forced to lay off workers or just went under. The market flooded with cheaper goods from China was to blame, as it also cornered the market on raw materials. Sales for Solar companies outside China plummeted. China appeared to be capitalizing on all the losses elsewhere.
Then, stories came about huge layoffs in Germany as companies went belly up. The business and future it held for employees even in Germany sank for an industry which seemed to hold such promise for its economy.
This is a warning about the dangers of government manipulated industries. China is the prime example. The solar industry once heralded as the new wave enjoyed growth and expansion everywhere, especially in China. The same government that subsidized it is picking winners and losers. Sound familiar? The state-controlled banks are the government’s cops on the beat. Of course, the banks decide who will survive by who gets loans and who doesn’t. And banks are not granting loans only for expansion, another blow to the sector.
Now the government decided it is time for industry consolidation after it endorsed expansion for years. So they must force consolidation. Banks already limited expansion and now encourage mergers and acquisitions within the sector, large companies buying smaller operations.
There are growing cries for tarrifs on China. Let’s see what that brings; or if they materialize with the same hyper-addiction the industry enjoyed? US has stepped up tariffs and the EU is on the verge of adopting tougher measures. Other countries are considering that formula. So a monopolized market is finally getting squeezeed as others seek relief to China’s “dumping” around the world. And that reaction appears to be creating a problem for China.
More reference: http://www.bloomberg.com/news/2012-09-06/china-price-war-draining-jobs-in-germany-s-solar-valley-energy.html