Solar Glass: Borosil Renewables Halts German Unit To Cut Losses

Solar Glass: Borosil Renewables Halts German Unit To Cut Losses

Indian solar glass manufacturer Borosil Renewables has implemented its plan to temporarily halt solar glass production at its German plant. The Board of Directors had previously planned this move to reduce losses at the plant due to low demand for solar glass in the European market.

Borosil Renewables produces solar glass in Germany through GMB Glasmanufaktur Brandenburg GmbH (GMB), a step-down subsidiary of the company. GMB aims to cater to the European solar glass market and operates a single furnace with a capacity of up to 350 Tonnes Per Day (TPD) at its manufacturing facility in Tschernitz, Germany.

Announcement of Halting Operations

The publicly listed company, in its latest filing with the stock exchanges, informed investors about the move. “..in continuation of our earlier letter dated December 18, 2024, wherein it was, inter-alia, informed that due to the absence of defined demand, continuation of production at GMB was deemed unfeasible and therefore in order to reduce the losses and manage cash flow more effectively, GMB was considering temporary cool down of its furnace, (subject to a controlled cool down to facilitate re-starting once demand stabilises), while continuing the cold end operations,” the company said.

Regarding the implementation of the plan, Borosil Renewables stated, “In this regard, please be informed that GMB has implemented the temporary cool down of its furnace. As informed in our aforementioned letter, the processing facilities at GMB will remain operational with a minimal workforce for conversion of semi-finished glass into finished glass for pending orders, with anticipation of full resumption of operations when the demand recovers.”

During the financial year 2023-24, GMB’s revenue from operations stood at Rs. 40,980 lakhs, while its net worth was Rs. 14,162 lakhs, representing 29.93% and 16.85%, respectively, of the company’s consolidated revenue from operations and net worth for the same period.

The Story Behind the Temporary Slowdown

In its filing with BSE on December 18, the company highlighted that demand for solar glass in Europe had declined due to reduced domestic production of solar modules in the region. The firm attributed this decline to the alleged dumping of cheap solar modules from Southeast Asian countries into the European market.

Borosil Renewables further pointed out that the lack of import duties or anti-dumping measures in the EU exacerbated the crisis. Under these circumstances, the continued production of solar glass at GMB was deemed unviable.

“The European Union (“EU”) has no import duties or restrictions on such dumped imports. Additionally, market conditions across the EU remain sluggish, resulting in cash losses for GMB. In the absence of a defined demand, continuation of production is not feasible. Moreover, manufacturing glass for stock is not a viable option, as the production is dependent on the demand for glass involving fractional sizes. Furthermore, producing for stock would substantially increase cash flow requirements,” the company stated in its December 18 announcement.

Borosil Renewables’ Status in India

As one of India’s largest solar glass producers, Borosil Renewables was previously affected by the absence of import and anti-dumping duties in the country, leading to financial losses. However, its export market provided some relief.

The year 2024 brought optimism for the company as the Indian government announced the imposition of import and anti-dumping duties against cheap solar glass imports from rival countries. This move effectively curbed the influx of ultra-cheap solar glass into India, allowing Borosil Renewables to strengthen its position in the domestic market while competitors faced setbacks due to the new trade policies.