PV Crystalox to shut down German plant, cut output

Dec 13, 2012 - UK multicrystalline silicon wafer maker PV Crystalox Solar Plc (LON:PVCS) said today it would close down a German polysilicon production facility and lower significantly output at its UK ingot and German wafer plants as part of a restructuring.

The closure of the Bitterfeld plant and production cuts at the other operations will result in significant job cuts in the UK and Germany.

The measures are part of a strategic restructuring of the company's operations designed to adjust its business to expected low short-term demand for photovoltaic (PV) products. With the plan PV Crystalox seeks to ensure that its continued operations are broadly cash neutral next year. The changes follow a strategic review carried out by the company's board of directors in response to the tough environment in the industry, which struggles with continued overcapacity and falling prices.

The company sticks to its forecast for an operating loss in the second half of 2012.

PV Crystalox also plans to return cash to shareholders in the second quarter of 2013, with more details to be provided in time.

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