Norsun has temporarily suspended production at its plant in Årdal, Norway, as module oversupply in Europe is affecting pricing across the solar value chain, resulting in employee layoffs through the end of this year.
NorSun says that the current market situation is behind the decision to temporarily stop production in Årdal until the end of the year. The monocrystalline wafer manufacturer told workers about temporary layoffs this week, but it has not said how many people will be affected by the decision.
“We can only register that the price drop and the build-up of modules in stock are creating major challenges for European players in solar energy,” said NorSun Managing Director Erik Løkke-Øwre, noting that the situation is affecting the entire value chain. “The market is flooded with low-cost modules that no one in Europe can compete with.”
In the meantime, the company will continue to concentrate on its short-term and long-term expansion plans, including plans to upgrade its production line in Årdal.
NorSun recently raised new capital for expansion. It was also selected for €53 million ($56.8 million) of funding from the European Union Innovation Fund.
This post appeared first on PV Magazine.