UPDATE 1-Arise Technologies says cuts production at German plant
* Says inventory levels rose in Q1
* Sees stronger demand levels in second half of 2011 (Follows alerts)
May 16 (Reuters) - Green energy company Arise Technologies said production at its German photovoltaic cell plant has been temporarily reduced due to higher inventory levels and tough market conditions.
The company, which makes photovoltaic(PV) cells and operates in Germany and Canada, said PV cell inventories rose in the first quarter as the European solar market experienced weaker-than-expected customer demand.
The industry expects stronger demand levels in the second half of 2011, based on an expected positive announcement regarding Germany's feed-in tariff reductions, the company said.
Declining subsidies in Europe and oversupply concerns had raised fears that margins in the fast-growing industry could suffer in 2011. [ID:nLDE72N1YV]
The Waterloo, Ontario-based company said it will adjust production volumes as required and maintain targeted inventory levels.
The company in talks with Commerzbank to extend its credit agreement, and according to an agreement with the bank, if Arise failed to meet the conditions, the bank had the right to sell off the company's German production plant. [ID:nL3E7E11V7]
Arise shares closed at 9 Canadian cents on Monday on the Toronto Stock Exchange.
(Reporting by Vaishnavi Bala in Bangalore; Editing by Prem Udayabhanu) ((email@example.com within U.S. +1 646 223 8780 outside U.S. +91 80 4135 5800 Reuters Messaging:firstname.lastname@example.org)
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