Norways NorSun Layoffs and Production Halt: How Will the European Solar Industry Respond to the Challenge of Low-Priced Chinese Components?

Recently, Norwegiansolarsilicon ingot manufacturer NorSun announced that due to the influx of low-cost Chinese solar modules into the European market, it would temporarily halt production and implement layoffs, sending shockwaves through thephotovoltaicindustry.

U.S. import restrictions have redirected Chinese modules to Europe, leading to rapidly growing inventories, with uninstalled capacity exceeding one year. NorSun CEO Erik Løkke-Øwre stated, The market is flooded with low-cost modules, and no European player can compete. Price declines and inventory buildup pose major challenges for European solar companies.

This shift has not only pressured NorSun but also threatened its partners and largest customers, forcing temporary layoffs on September 7. While the number of affected employees was undisclosed, the move is a significant blow. Production at the Årdal plant has also been suspended until year-end.

Løkke-Øwre emphasized the need for continued Norwegian government support for the EU Innovation Fund, highlighting NorSuns role as the Wests sole silicon ingot and wafer producer in developing Europes solar value chain.

Despite challenges, NorSun remains committed to expansion, including upgrading the Årdal plant and partnering with Canadas Silfab Solar to expand U.S. production.

NorSuns struggles reflect broader issues in Europes solar sector. PVTech reports that multiple European manufacturers and startups, via the European Solar Manufacturing Council (ESMC), have urged EU action against unsustainably low-cost Chinese modules.

SolarPowerEurope has also warned EU leaders about the dangerous impact of collapsing global solar prices, with manufacturing costs falling 25% in recent months.

This series of events reflects an unprecedented transformation in the global solar industry. The influx of low-priced photovoltaic modules into the market has led to a sharp decline in prices, undoubtedly putting tremendous pressure on many manufacturers. In this wave of change, how to maintain competitiveness and adapt to market shifts has become a critical question every enterprise must address.

For NorSun, despite facing short-term challenges such as layoffs and production halts, the company has demonstrated a proactive approach. Through collaborations with other firms and upgrades to its facilities, NorSun has shown its strategy to establish a foothold in future market competition. For the broader European solar industry, addressing low-price competition and protecting domestic manufacturing remains a long-term and formidable task.

This challenge has also drawn significant attention from governments and industry organizations. They have called for measures to safeguard Europes solar manufacturing sector and mitigate potential risks from price wars. In this context, government policy support and industry self-adjustment will play pivotal roles.

In the long run, for the European solar industry to maintain its leading position in intense market competition, continuous innovation, improved product performance, and cost reduction are essential. Only through these measures can European solar enterprises compete globally and achieve sustainable development.