Solar-Fabrik, in a statement announcing the closure, has claimed that after the termination of its last wafer supply agreement, cell production at SEP was no longer viable. The company will now focus on its core module business, which is experiencing "continued volume growth" and has positive earnings-before-interest-and-taxes (EBIT) in the third quarter (Q3) of 2011.
Solar-Fabrik has also said that the closure of SEP represents the "final step for Solar-Fabrik" in its focus on its module and downstream business.
Falling on his sword, SEPs Managing Director and CTO Freddy Goh will retire from both positions in April 2012.
Solar-Fabrik has claimed in its statement that SEPs fixed asset and prepaid contract payments, amounting to 2.5 million euros, will result in the company posting a loss for 2011.
Module capacity is continuing to grow however, reaching 88 megawatts (MW) in cumulative production for the first three quarters of 2011, representing 10 percent growth from 2010. Solar-Fabriks Q3 results will be published on November 10.
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