Dec 13 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
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
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
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.