PV Crystalox Solar to end UK ingot production in Q3 2017

UK-based multicrystalline silicon wafer maker PV Crystalox Solar Plc (LON:PVCS) said today it expects to cease all silicon ingot production at home this quarter, thus losing most jobs in its local trading subsidiary.

The company currently processes ingots into blocks in the UK and manufactures wafers at its facility in Germany. It has decided to end UK activities in view of the continuing adverse PV market environment, with wafer prices still below production costs. The goal is to better align production costs with market prices and further cut overheads.

After ceasing block production in the UK, the company will rely on the purchase of blocks from an external supplier. It plans to keep its operational wafer production capabilities in Germany.

Meanwhile, the firm is awaiting the receipt of the judgement of the arbitral tribunal on a dispute with a client who failed to buy wafers under a signed long-term sales contract. The decision is expected by the end of this quarter.

As at June 30, 2017, the group’s net cash position was EUR 27.9 million (USD 32m), compared to EUR 28.8 million at end-2016, it said.

(EUR 1.0 = USD 1.141)

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