The Japanese electronics giant in May last year announced plans to transfer its Malaysian solar manufacturing unit to Chinese heterojunction module provider GS-Solar (China) Company Ltd, and to separate out its solar R&D unit into a joint venture with its partner.
However, the Japanese brand said on Thursday: “Panasonic will exercise its right not to proceed with the agreement, due to GS-Solar’s failure to fulfill the requirement necessitated to launch by the deadline agreed to in the contract.
They will take resolute measures, which do not rule out taking legal action against GS-Solar for a breach of contract.”
The company said it had given GS-Solar extra time to meet its end of the deal, due to the Covid-19 crisis, but a second deadline had also been missed by the Chinese business.
Solar module production will continue at the Panasonic Energy Malaysia Sdn Bhd solar manufacturing operation, as well as the group’s Japanese factories in Nishikinohama, Fukushima and Shimane.
Panasonic blamed deteriorating market conditions and consolidation in the housing market as its Life Solutions division – which includes its solar business – registered a 30% quarterly fall in sales to ¥325 billion ($3.08 billion) in its last three-month update.
Reference- Panasonic PR, PV Magazine, Clean Technica