PV Crystalox Solar to restructure ops, sees significant job cuts
Dec 13 (Reuters) - Solar power components maker PV Crystalox Solar Plc said it will post a loss in the second half of the year and restructure its business, including cutting jobs, to cope with lower prices due to an oversupply in the solar industry.
U.S. and European producers have raised concerns that China's rapid expansion in solar panel manufacturing has created a massive oversupply, destroying profits and crippling share prices.
PV Crystalox said it plans to shutter its polysilicon production facility in Bitterfeld, Germany, as part of the restructuring, and reduce production at its UK ingot and German wafer operations.
This would lead to "very significant" job cuts in the UK and Germany, the company said in a statement.
"Spot wafer prices have continued to fall and are now 77 percent below the level of April 2011 and remain significantly below industry production costs," PV Crystalox said.
The restructuring would align the business with anticipated short-term demand, enabling the company to be cash neutral in 2013 and return cash to shareholders during the second quarter of next year, it said.
Shares in the company were trading down slightly at 9.88 pence at 0803 GMT on the London Stock Exchange.