Silex Systems Shuts Sydney Solar Panel Manufacturing Unit
05/24/2012| 03:04am US/Eastern
Silex Systems Ltd. (>> Silex Systems Limited) said Thursday it will close its solar panel manufacturing operations in Sydney in the face of challenging market conditions.
The company bought the manufacturing assets and equipment at the Sydney Olympic Park Solar facility for 6.5 million Australian dollars (US$6.3 million) from BP Solar in mid 2009, with BP unable to operate the facility profitably.
Silex restructured the business last August but Chief Executive Michael Goldsworthy said trading conditions in the Australian solar panel market hadn't improved enough.
Closing the plant will have a one-off negative cash impact of up to A$4.8 million over the next 15 months from such items as negotiated lease settlement, dismantling and decommissioning and final redundancy costs and an additional balance sheet write down of up to A$5.2 million, he said.
Silex's main project, a third generation, laser-based uranium enrichment technology is in an advanced stage of assessment ahead of possible commercialization by a consortium headed by General Electric (GE) with 51%, Hitachi Ltd. (6501.TO) with 25% and Cameco Corp. (CCJ) with 24%.
By Ray Brindal, Dow Jones Newswires; 612 62080902; email@example.com