1 Jul 2013 07:00
1 July 2013
PV Crystalox Solar plc ("PVCS") announces the disposal of its polysilicon operations in Bitterfeld (Germany) ("the Plant").
PVCS is pleased to announce that it has agreed the disposal of its polysilicon operations in Bitterfeld Germany to a management buy-in team. The team will acquire the Plant through Silicon Products Research Engineering Production GmbH ("Silicon Products").
No consideration is being received for this transaction but Silicon Products will take over the Plant and the staff together with the associated obligations and liabilities, including those relating to the repayment of grants and subsidies of approximately €18.4 million. PVCS will contribute €12.3 million to Silicon Products. This transaction is expected to result in a lower net cost than the alternative option of the closure and break-up of the Plant. Excluding the €12.3 million cash payment, the gross assets of the Plant are €8 million, representing the book value of the plant and equipment.
Polysilicon production at the Plant was suspended in November 2011, from which time the Plant operated in idle mode, and a decision to permanently discontinue operations at the Plant was taken at the end of 2012. Pre tax losses of €78 million were recorded in relation to the Plant for the year ended 31 December 2012 due largely to the decision to write down the value of the Plant.
Iain Dorrity, CEO of PVCS commented:
"The Board believes that this transaction is preferable to the shut down scenario as not only does it result in lower cash outflows for the Group but also gives certainty over their timing. In addition, it enables some jobs to be maintained at the Bitterfeld facility under the new management."
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437188
Iain Dorrity, Chief Executive Officer
Peter Finnegan, Chief Financial Officer
Matthew Wethey, Group Secretary