Overcapacity in the supply chain has forced solar wafer supplier, PV Crystalox to agree to a temporary adjustment of its wafer prices for some of its contracted customers as the price of spot market wafers has dropped below its contract price levels. The company has also experienced push-outs of orders since March, 2009 resulting in an expected revenue decline of approximately 10% for the first half-year, compared to the same period a year ago. Revenue for that period last year was €126 million.
Order deferrals are expected to reach 30 – 35MW by the end of H1, with total shipments for the period expected to be in the region of 90 – 95MW, compared with 110MW in the same period of 2008.
PV Crystalox also reiterated that it’s new our polysilicon production facility in Bitterfeld is proceeding to schedule with production to start later in May. The company expects to produce 450MT in 2009.
Q-Cells, a major customer of PV Crystalox has lowered expected production targets for 2009 as well as executives noting in a conference call that it had been successful in renegotiating some of its raw material contracts.