Investment bank ready to bet on US solar duties being dropped

June 29, 2016
Facebook
Twitter
LinkedIn
Reddit
Email
The probability of a resolution to the trade case has increased, according to Swedbank. Source: Hakan Dahlstrom/Creative Commons.

Analysts at Swedbank are working on the basis of an increased probability that solar trade duties in the US will be removed.

In a research note published last week, the bank said the chances of SolarWorld losing its US$770 million case with Hemlock had increased and with it, the chance of a trade settlement had also increased.  Several industry sources have independently told PV Tech that Hemlock had offered to drop the case in return for SolarWorld withdrawing its trade petitions against Chinese cells and modules.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“Although SolarWorld allegedly has alternatives to stall the process in the event of a negative ruling, we also find several indications that a negative US ruling would have crippling effects on the company financials – forcing the company to reach a settlement with Hemlock,” it said in its research note.

The bank listed this as one of several reasons why it was increasing its rating of REC Silicon, which along with Hemlock and other poly producers with facilities in the US, would benefit from the reciprocal removal of China’s trade duties on US polysilicon. It is understood that by securing an agreement from SolarWorld to drop the US case, Beijing would then drop its own tariffs on US polysilicon. Chinese officials have met with at least one US polysilicon firm this year to discuss the trade situation. 

Hemlock case

Hemlock asked in March for a summary judgement in the US$770 million case against SolarWorld subsidiary Deutsche Solar, which is accused of not providing payment for a series of polysilicon orders. A hearing on this was scheduled for 9 June, moved to the 23 June before that was also cancelled. Last week a judge in the Hemlock versus Deutsche Solar case denied a request by SolarWorld to re-open oral arguments and instead gave the company five days to file a 10-page summary of any additional arguments.

By refusing further oral argument, Swedbank said it expected the court to give a ruling on summary judgement without a trial.

“We believe it is unlikely that a 10 page letter from SolarWorld in the next five days will change the court’s intentions of moving forward to a ruling,” the bank said in the research note. “A summary judgement ruling could mean a Hemlock Semiconductor win within a matter of months.”

SolarWorld has stressed that any decision against it would need to approval from a German court.

“According to our risk assessment regarding Hemlock, the probability that an actual outflow of resources will take place is considered as low, since it is unlikely that Hemlock will be able to enforce a possible US ruling in Germany because the underlying contracts do not comply with European antitrust legislation,” Milan Nitzschke, vice president at SolarWorld told PV Tech prior to the release of the Swedbank note. “European law would have to be taken into a consideration by a German court,” he said.

When contacted by PV Tech, SolarWorld was not able to discuss the Swedbank commentary directly.

Read more on this story here

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

October 30, 2025
Global net zero by 2050 is now “impossible” and the world is on course for temperature rises of 2.6°C, according to energy market analyst Wood Mackenzie.
October 30, 2025
US microinverter producer Enphase Energy posted increased revenues, margin and income in Q3 2025, as it doubles down on its US manufacturing operations.
October 30, 2025
Nexamp has secured US$600 million in financing for distributed solar and energy storage projects in the US.
October 29, 2025
NextEra Energy Resources added 3GW of new renewable energy generation and storage capacity to its portfolio in the third quarter of 2025.
October 29, 2025
US solar manufacturer Corning has brought online its wafer production at its Michigan plant, during the third quarter of 2025.
October 28, 2025
GoldenPeaks Capital secures EUR114 million (US$132 million) financing package for two solar PV Portfolio in Poland.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany