Wafer price declines in 2H to hit PV Crystalox Solar’s profitability

Facebook
Twitter
LinkedIn
Reddit
Email

Having noted a 45% price decline for bare wafers from May to June this year, PV Crystalox Solar said it was currently operating below breakeven level and expects further pricing pressure in the second-half of the year could lead to incurring an operating loss in the second half. Despite challenging business environment, the wafer producer posted a 23% increase in wafer shipments in the first-half of the year to 204MW, compared to the same period (165MW) a year ago. PV Crystalox posted revenue of €129.6million, up 16% compared the prior year period. EBIT was up by 161% to €24.3 million. Wafer production capacity also increased, reaching a nameplate capacity of 535MW. The company is expanding capacity to 750MW by early 2012.

“Our performance in the first half underlined the progress we have been making in recent years to diversify our customer base and to reduce our costs,” commented, Dr Iain Dorrity, PV Crystalox Solar’s Chief Executive Officer. “Despite significantly reduced global market demand, we have increased shipments and delivered a strong improvement in profitability. Looking ahead, industry volumes are expected to pick up in H2 but the pricing pressure seen recently is persisting and we are currently operating below breakeven. We are taking measures to counteract these difficult conditions and we are hopeful that developments in a number of markets will lead to increased demand and more favourable trading conditions in the medium term.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The company noted it had been successful in diversifying its customer base, noting that shipments to customers in Asia exceeded 80% of revenues in the first-half of 2011, while Japan, Taiwan and China each account for over 25% of revenues. In 2009, PV Crystalox’s customer base was dominated by Japan at nearly 60% and only a small number of key accounts.

PV Crystalox reported that ASPs down approximately 6% below prior year levels, supported by 10% improvement in manufacturing cost reductions and in-house polysilicon supply, which cost lest than from suppliers.

Cost reductions are expected between 5-10% in the second-half of the year, while its polysilicon production plant in Bitterfeld, Germany is expected to operate at nameplate capacity of 1,800MT for the remainder of the year, supporting cost reduction efforts.

Annualised polysilicon output averaged 1,475MT during the first five months of 2011, prior to scheduled maintenance shutdown in June.

PV Crystalox expects total 2011 wafer production to be in the range 400MW-450MW. 

Read Next

July 4, 2025
Chinese PV provider Skycorp Solar Group has announced a solar plant acquisition and development strategy following unanimous board approval.
July 4, 2025
Germany’s latest innovation tender has awarded 488MW of co-located capacity, with all the projects being solar PV tied with energy storage.
July 4, 2025
Risen Energy’s mass-produced heterojunction (HJT) modules have reached a cell conversion efficiency of 26.61%, a record figure for the company.
July 4, 2025
The US House of Representatives has passed the final version of the reconciliation bill that is now going to US President Donald Trump’s desk for his signature before its passing.
July 4, 2025
Australian retailer AGL Energy has confirmed its acquisition of South Australia’s Virtual Power Plant (SAVPP) from Tesla.
July 3, 2025
Renewable energy curtailment in Brazil is set to reach 8% across the country, and be as high as 11% in the north-east, by 2035.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK