UK-based solar wafer producer, PV Crystalox Solar will implement a significant reduction in its workforce, while discontinuing its polysilicon operations in Germany and heavily cut ingot production in the UK and wafer production in Germany.
The struggling company had previously halted polysilicon production and cut wafering operations with job losses as it faced significant ASP declines for its products due to chronic overcapacity on polysilicon and solar wafers. The company had been operating for most of the year with very low utilization rates for its wafering operations.
Management said in a short statement: “Spot wafer prices have continued to fall and are now 77% below the level of April 2011 and remain significantly below industry production costs.”
PV Crystalox had warned in its half-year financial report that management would undertake a strategic review of the business with the possibility that it would wind-down all operations and return cash to investors.
However, the radical restructuring plan is designed to reduce its cash burn and be broadly cash neutral in 2013, according to the statement. The company will also to return cash to shareholders during Q2 2013.
Actual details of the restructuring were not announced but the company said it would provide further updates in due course.