German Solar-Fabrik to close solar cell production in Singapore
Oct 26, 2011 - German solar module maker Solar-Fabrik AG (ETR:SFX) announced today it had decided to terminate its solar cell production in Singapore, which has so far been executed by Solar Energy Power Pte Ltd (SEP).
Solar-Fabrik has been holding a 90% stake in SEP since 2006 but due to the significant switch towards continuous oversupply in the global market in 2009, SEP has lost its strategic relevance and production at the Singapore-based company is no longer economically viable, the German firm said.
The termination of SEP's operations will result in one-off charges of around EUR 2.6 million (USD 3.6m) as of September 30, 2011, which is expected to make Solar-Fabrik face a loss in 2011.
SEP's CEO, who is also chief technology officer (CTO) at Solar-Fabrik will resign from both positions in April 2012.
The discontinuation of the solar cell production in Singapore marks the final step for Solar-Fabrik towards a complete focus on its module business.