The German Economy Ministry has expressed its disappointment at the closure of Swiss solar manufacturer Meyer Burger's plant in Freiberg, in the eastern German state of Saxony.
"The news from Freiberg is depressing," Michael Kellner, a top official at the Economy Ministry, said on Tuesday.
The company had been active in the solar technology industry for more than 40 years, building solar modules and cells that could be installed in domestic and commercial applications.
Kellner added that he was aware of the very serious situation facing German solar companies and was in regular and intensive dialogue with the industry, particularly with companies producing in eastern Germany.
Meyer Burger, headquartered in Thun in Switzerland, announced at the beginning of the year that it would be closing its plant in Freiberg and focusing on the US market. The around 500 people who work in Freiberg have been given their notice.
The company has been complaining for some time about competition from cheap modules from China.
Finance Minister Christian Lindner of the pro-business Free Democrat Party (FDP) had rejected a solar industry proposal for a "resilience bonus," which was intended to protect manufacturers under pressure in Europe. That bonus may have saved Meyer Burger and other companies caught in similar circumstances.
Kellner, from the Green party, said it was "very regrettable that this is not going to happen now. Even though not everything has been negotiated yet, the scepticism of the coalition partner [the FDP] is unfortunately still too great."
However, he said he would not give up and would advocate for other funding opportunities at EU level.
According to the ministry, the German government is using various tools and levers to strengthen production capacities in Germany and Europe. In particular, there is room for manoeuvre in European state aid law.