CHINESE battery-maker svolt Energy Technology has decided to suspend construction on its two plants in Germany as the cost of the projects has become too great for the cash-strapped company, reports Caixin.
The setback to its overseas expansion comes as SVOLT has been slimming down in a wide-reaching restructuring that its CEO revealed in earlier this year in reaction to overcapacity and a price war at home.
Construction of both facilities is on indefinite hold, sources close to SVOLT told Caixin. 'To complete the construction of the European plants, an initial investment of CNY30 billion (US$4.2 billion) is required, which is too large for SVOLT,' one of the sources said.
In February, CEO and chairman Yang Hongxin said on social media that his company had begun a restructuring that included eliminating underperforming employees and improving efficiency in production.
SeaNews Turkey
The setback to its overseas expansion comes as SVOLT has been slimming down in a wide-reaching restructuring that its CEO revealed in earlier this year in reaction to overcapacity and a price war at home.
Construction of both facilities is on indefinite hold, sources close to SVOLT told Caixin. 'To complete the construction of the European plants, an initial investment of CNY30 billion (US$4.2 billion) is required, which is too large for SVOLT,' one of the sources said.
In February, CEO and chairman Yang Hongxin said on social media that his company had begun a restructuring that included eliminating underperforming employees and improving efficiency in production.
SeaNews Turkey
