German engineering giant Siemens has confirmed it is completely winding down its solar business. The involvement ended in a disaster, costing Siemens about one billion euros.
The firm said the purchase of Israeli company Solel had proven to be unprofitable amid fierce Asian competition.
Plans to sell off its solar business had come to nothing, Siemens admitted Monday in confirming a report in the German newspaper “Handelsblatt”. The company said the segment would be wound down completely by the spring of next year.
Siemens had tried for seven months to find a suitable investor, it said. There had been talks with potential buyers, but in the end, negotiations stalled.
“There was no sign of a transaction which would have taken into account the interests of clients, staff, investors and the company itself in an adequate way,” Siemens said in a statement.
The failure of talks will affect 280 employees, most of them in Israel. Siemens CEO Peter Löscher had decided to buy Israel’s thermal solar installations firm Solel, expecting rapid growth in the sector. But the involvement ended in a disaster, costing Siemens about one billion euros ($1.3 billion).