CSP World

Flabeg Solar US Corp, the American subsidiary of Germany’s Flabeg Solar, has reportedly ceased production in its factory at Clinton, Pennsylvania. According to information published by Pittsburgh’s Post Gazette, the company stopped production March 28.

According to documents accessed by CSP World, on April 2, a ‘Chapter 7 Involuntary Petition’ was filed with the Pennsylvania Western Bankruptcy Court. The petition has been filed by a group of 10 former employees who claim their severances are yet unpaid. The debt claimed by these former employees amounts to $197,297.21.

According to Post Gazette, a company’s attorney said the firm has not enough money to pay these employees’ debt and added that Flabeg expects to have between $6 million and $7 million in total debt including several vendors. The company will “most probably” file for Chapter 11 bankruptcy, the attorney added.

It has been reported that Flabeg Solar US’ President, Torsten Koehler claimed “the overall slow environment in the industry” has led to the closing of the factory while Germany’s parent company released a statement claiming that “the current order and market situation in the North American solar market does not offer any prospect of profitably justifying to continue with the Clinton plant”.

Flabeg is one the largest supplier of mirrors for Concentrated Solar Power plants with roughly 40 plants using Flabeg mirrors’ worldwide.

Crescent Dunes, the tower plant under construction in Nevada and Genesis, a parabolic trough plant under construction in California are being supplied with Flabeg’s mirrors. In the case of Crescent Dunes, it’s been reported that SolarReserve, the developer of the project doesn’t expect significant issues after Flabeg’s halt in production. Regarding the Genesis project, the delivery period shown in Flabeg’s website is 2011.

US medias are highlighting the fact that Flabeg was granted with $10 million from the Recovery Act Advanced Energy Manufacturing Tax Credits and a $9 million grant was awarded by the state of Pennsylvania. Comparisons with Solyndra’s bankruptcy are on the air.