PVCS.L Regulatory News (PVCS)

18 Nov 2008 07:00



18 November 2008

PV Crystalox Solar PLC

INTERIM MANAGEMENT STATEMENT FROM 1 JULY 2008 TO DATE

PV Crystalox Solar plc (or "the Group") issues this Interim Management Statement in accordance with the UK Listing Authority's Disclosure and Transparency Rules.

Performance of the Group remains strong with turnover in our core silicon products business considerably ahead of the levels achieved in the second half of last year as we continue to benefit from robust demand within the PV market. Wafer shipment volume for 2008 is now anticipated to be in the region of 225-230MW, slightly higher than indicated at the time of our interim results. As a result of the solid performance of the company in all areas, and the benefits of currency translation, we expect performance for the full year to be significantly better than previously anticipated. 

Construction of our polysilicon production facility in Bitterfeld Germany remains on-track, both in terms of timing and budget with commissioning due to start in December and first production expected to commence in April 2009.

 During the second half of the year we have concluded further long-term wafer supply agreements with a range of customers such that over 95% of planned production in 2009 is now contracted at fixed prices. We are mindful of the potential detrimental effect of a slowdown in the world economy and the impact of tougher financing conditions on large scale solar projects. However, demand from our customers remains unchanged and wafer shipments continue to be made in accordance with contract schedules.

The financial position of the Group continues to be very sound, as demonstrated by our strong positive cash position. It is expected that our longstanding relationships with major PV companies will help ameliorate the effects of any weakening of the PV market which might develop in an uncertain global economy. Furthermore, the recent Japanese Government announcements of enhanced subsidies for PV installations are expected to strongly benefit solar cell producers in Japan who continue to represent the Group's major customer base. Consequently we believe the outlook for the Group remains favourable. 

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Notes to Editors:

PV Crystalox Solar, initially established in the UK in 1982, is a highly specialised supplier of multicrystalline silicon wafers to the world's leading solar cell manufacturers. The Group was one of the first to develop industrial scale technology for production of multicrystalline silicon ingots, setting the industry standard. 

The Group manufactures silicon ingots in Oxfordshire, United Kingdom, and carries out wafer production for European customers at its facilities in Erfurt,Germany. Wafers for customers in Asia are produced in Japan.

PV Crystalox Solar is currently constructing a 1,800MT solar grade polysilicon production facility in Bitterfeld, Germany.