13 Jul 2017 12:01
RNS version
PV Crystalox Solar PLC
Closure of UK manufacturing operations
13 July 2017
In its 2016 Annual Report PV Crystalox Solar plc (the "Group") advised that it would phase out multicrystalline silicon ingot production in the UK during 2017 and rely on the purchase of ingots from an external supplier. Ingots are currently processed into blocks in the UK and wafers produced in our German facility. In view of the continuing adverse PV market environment where wafer prices remain below production costs and in order to better align production costs with market prices and further reduce overheads, the Group is now proposing to stop block production and instead source blocks from an external supplier. As a result it is expected that all production operations in the UK will cease during Q3 and, that subject to consultation with employees, most jobs in the Group's UK trading subsidiary, Crystalox Limited, will be lost.
The Group will retain its operational wafer production capabilities in Germany and will continue its focus on the niche low carbon footprint wafer market where it has some competitive advantage.
The Board remains mindful of the need to protect shareholder value and intends to complete the strategic review following receipt of the judgement of the arbitral tribunal on the Group's dispute with a customer who failed to purchase wafers in line with its obligations under a long-term sales contract. The judgement is expected before the end of Q3 2017.
The Group's net cash position at 30 June 2017 was €27.9m (€28.8m on 31 December 2016).
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437160
Iain Dorrity, Chief Executive Officer
Matthew Wethey, Chief Financial Officer and Group Secretary