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PV Crystalox unveils "radical" restructuring

PV Crystalox Solar plc has announced it will discontinue polysilicon production in Germany and "substantially" reduce ingot and wafer production in the U.K. and Germany, respectively.

PV Crystalox has announced significant job losses.

PV Crystalox

Due to the "vast" overcapacities and resulting challenging market conditions, U.K.-based PV Crystalox has unveiled what it calls a "radical" restructuring plan, which will see polysilicon production in Germany’s Bitterfeld discontinued, and ingot and wafer production reduced in the U.K, and Germany, respectively.

While the company did not provide any specific figures, the restructuring will lead to "very significant" job losses in both countries. "The Group expects to return cash to shareholders during Q2 2013 in a manner that will provide shareholders with an element of choice as to the form in which they receive the cash," added the company.

Overcapacity, particularly in China, has been blamed for the move. On the back of spot wafer prices, which are said to be "significantly below industry production costs", the company forecasts a 2H 2012 operating loss.

"The Group intends to adjust its operations to align with anticipated sustainable short term market demand so that the ongoing business will be broadly cash neutral in 2013," continued the statement.

Last October, PV Crystalox announced it had temporarily suspended polysilicon production in Germany, and reduced ingot and wafer production in the U.K. and Germany. At the time, significant job losses were said to have occurred.