Celestica to Exit Solar PV Panel Manufacturing Business

Celestica Announces Exit from the Manufacturing of Solar PV Panels

Celestica Inc. has announced to exit the manufacturing of solar PV panels. The company quotes disclosed PV market instability and global oversupply of solar panels which have continued to negatively impact its solar PV panel manufacturing business, including the pricing and demand for solar PV panels in the fourth quarter of 2016.

“Since these negative factors are expected to be prolonged, and we no longer expect to generate reasonable returns, we made a decision in the quarter to exit the manufacturing of such solar PV panels,” reads the press release.

In connection therewith, Celestica recorded restructuring charges totaling approximately USD 21 million in the fourth quarter of 2016 related to the closure of its solar panel manufacturing operations at its two locations, including a USD 19 million impairment charge to write down the carrying value of its solar manufacturing equipment to recoverable amounts.

“The turbulence in our solar PV panel business has negatively impacted our overall energy market offering, and therefore, our diversified end market,” the company notes.

“However, since our energy market offering is diverse, and includes the manufacture of inverters, energy storage products, smart meters and other electronic componentry, we remain optimistic regarding the outlook of our energy products business, as we continue to win new programs with renewable energy customers.”

Source: Solarserver