German engineering conglomerate Siemens is all set to permanently suspend operations of its solar business, Solel Solar Systems, amidst losses of nearly $1bn.
The losses that also include write-off of the purchase price are said to have been driven by heavy price drop of solar equipments. The company has acquired Solel in 2009 in a deal worth $418m.
Confirming the speculations, Siemens spokesman Torsten Wolf told Bloomberg that the company would first complete the ongoing solar projects, and added that the total closure is expected to cost a double-digit million-euro amount.
The company had put up the unit up for sale back in October 2012; however, it failed to conclude an agreement with any of the potential bidders.
"It has become evident that, due to the increasingly difficult market situation, we will not find an investor for this business," revealed Wolf.
European solar industry is reportedly stuttering due to the heavy exports of solar equipments at low prices from China. It has dented majority of solar modules manufacturer in the European Union.
In the wake of solar module dumping, EU has also decided to levy punitive taxes on China-made products.