Jan 31 (Renewables Now) - Canadian electronics manufacturing services company Celestica Inc (TSE:CLS) has decided to exit the production of solar panels and as a result has suspended such activities at its two locations.
The company explained last week that it no longer expects to generate reasonable returns from the production of solar panels due to the market instability and global oversupply of such products. It said that these negative factors are seen to be prolonged.
Because of the closure of solar panel manufacturing operations, Celestica has incurred about USD 21 million (EUR 19.6m) in restructuring charges during the fourth quarter of the year, including a USD-19-million impairment charge to write down the carrying value of the company’s solar manufacturing equipment to recoverable amounts.
“The turbulence in our solar panel business has negatively impacted our overall energy market offering, and therefore, our diversified end market,” the company said. Still, it believes it can continue to win new programmes with renewable energy customers thanks to the diversified nature of its energy market offerings that include inverters, energy storage products, smart metres and other electronic componentry.
(USD 1.0 = EUR 0.933)