* Says inventory levels rose in Q1
* Sees stronger demand levels in second half of 2011
May 16 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
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
((firstname.lastname@example.org within U.S. +1 646 223
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