Germany-based PV integrator Phoenix Solar AG says it will shut down portions of its business and refocus on other areas due to the current market environment.
The company plans to dedicate resources to the ‘strongly growing regions’ in the Asian and U.S. markets, where it has existing subsidiaries. Phoenix Solar says its French and Greek subsidiaries are also well positioned and profitable, while the Spanish and Italian segments are struggling. Additionally, an Oman-based subsidiary will be closed.
In its home country of Germany, Phoenix Solar will divest its components and systems business, as well as its power plants business. Its operations and maintenance unit in Ulm, Germany, will remain operating. The company also plans to develop ‘new business models for the project and distribution businesses.’
With these changes, the company has made an unspecified number of job cuts globally. Phoenix Solar has also entered new contracts for its credit agreements and adjusted its financial forecasts. The company now expects approximately 160 million to 190 million euros in revenue this year, compared to an original forecast of 280 million euros to 310 million euros.
Finally, Andreas Hanel, founding director and CEO, has resigned. He will be replaced by Bernd Kohler, who will also continue to serve as chief financial officer.