LONDON (Alliance News) - PowerHouse Energy Group PLC Friday said it has ceased all of its operations in Switzerland and Germany so it can solely focus on the construction of the company's gasification system in Australia.
The company said it will put all of its efforts into constructing the newly designed PHE G-3 UHT gasification system in Australia, and the contract opportunities that stem from it.
As a result, PowerHouse has ceased all of its operations in Switzerland and Germany, including the company's plans to reconstruct the Eiting plant in Munich. The company had planned to relocate and rebuild a pyromex facility in Eitling, but it has now decided it "will not provide a sufficient return on investment," it said in a statement.
The cost of the Eiting plant to date is around EUR70,000, and PowerHouse is not expecting to incur any further significant costs relating to the plant.
"The board has made this decision to close all operations in Switzerland and Germany, as the expense of supporting the former pyromex technology is felt to be unnecessary with the advent of the new PHE G-3 UHT system," said PowerHouse.
All operations in Switzerland and Germany are being relocated to Brisbane, Australia, and the company will be focusing on sales to the Australian, Asian and US markets, the company said.
PowerHouse will keep its UK office open, which will continue to focus on opportunities in the UK and Europe.
"This decision has been made in the best interests of the company's shareholders. It represents a clear step forward for Powerhouse to focus its efforts in more exciting markets where demand for the new PHE G-3 UHT system is growing, whilst we keep our costs lower," said Executive Chairman Keith Allaun.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Powerhouse Ener (PHE)