PV Crystalox Solar PLC Closure of UK manufacturing operations (0016L)
July 13 2017 - 7:01AM
UK Regulatory
TIDMPVCS
RNS Number : 0016L
PV Crystalox Solar PLC
13 July 2017
RNS version
PV Crystalox Solar PLC
Closure of UK manufacturing operations
13 July 2017
In its 2016 Annual Report PV Crystalox Solar plc (the "Group")
advised that it would phase out multicrystalline silicon ingot
production in the UK during 2017 and rely on the purchase of ingots
from an external supplier. Ingots are currently processed into
blocks in the UK and wafers produced in our German facility. In
view of the continuing adverse PV market environment where wafer
prices remain below production costs and in order to better align
production costs with market prices and further reduce overheads,
the Group is now proposing to stop block production and instead
source blocks from an external supplier. As a result it is expected
that all production operations in the UK will cease during Q3 and,
that subject to consultation with employees, most jobs in the
Group's UK trading subsidiary, Crystalox Limited, will be lost.
The Group will retain its operational wafer production
capabilities in Germany and will continue its focus on the niche
low carbon footprint wafer market where it has some competitive
advantage.
The Board remains mindful of the need to protect shareholder
value and intends to complete the strategic review following
receipt of the judgement of the arbitral tribunal on the Group's
dispute with a customer who failed to purchase wafers in line with
its obligations under a long-term sales contract. The judgement is
expected before the end of Q3 2017.
The Group's net cash position at 30 June 2017 was EUR27.9m
(EUR28.8m on 31 December 2016).
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437160
Iain Dorrity, Chief Executive Officer
Matthew Wethey, Chief Financial Officer and Group Secretary
This information is provided by RNS
The company news service from the London Stock Exchange
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