Qcells, the U.S. solar manufacturing arm of South Korea’s Hanwha Solutions, said it is laying off about 1,000 factory workers and reducing hours at its facilities in Dalton and Cartersville, Georgia. The company is also cutting about 300 employees employed through temporary employment agencies.
The move comes months after Qcells reported that certain shipments of solar cells and polysilicon – intermediates originating from allied countries such as Malaysia and South Korea – were being shipped. detained by US Customs and Border Protection (CBP) as part of enhanced surveillance under the UFLPA.
Qcells is currently engaged in a $2.5 billion expansion in Georgia intended to establish a fully integrated domestic solar supply chain that includes the production of blocks, wafers, cells and modules. This investment is one of the most important projects catalyzed by the Inflation Reduction Act (IRA).
A company spokesperson confirmed that while most delayed shipments are now passing through customs, the significant delay forced a decision to reduce production capacity and implement personnel actions to improve operational efficiency. Affected employees will retain full benefits, and the company expects to resume full production and recall furloughed staff “in the coming weeks and months.”
The incident highlights the complex implementation issues facing U.S. solar energy production. Companies strive to meet domestic content requirements and build resilient supply chains, but the need to import specific components during the ramp-up phase has created critical bottlenecks at the border due to trade enforcement policies. The temporary production cut underlines the vulnerability of domestic capacity as the industry shifts away from dependence on foreign upstream materials.
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