Photowatt France cancels EUR180 million in silicon orders

ATS Automation Tooling Systems Inc. (TSX:ATA) announced that its Photowatt France (PWF) subsidiary has reached agreements to terminate certain of its silicon and wafer supply contracts. PWF is expected to incur charges of EUR17.5 million related to this action.

October 3, 2011 — ATS Automation Tooling Systems Inc. (TSX:ATA) announced that its Photowatt France (PWF) subsidiary has reached agreements to terminate certain of its silicon and wafer supply contracts. PWF is expected to incur charges of EUR17.5 million in the second quarter ending October 2, 2011, including asset impairment charges of EUR14.5 million, representing previously paid deposits.

The termination agreements will eliminate commitments over the next 6 years to purchase approximately 180 million Euro of silicon and wafers at contractual prices in excess of current spot market levels.

Photowatt France reports that the silicon and wafers represented by these agreements will not be needed to meet its current and planned solar photovoltaics manufacturing capacities.

ATS Automation provides automation systems to companies in the life sciences, computer/electronics, energy, transportation and consumer industries. Through Photowatt, ATS participates in the growing solar energy industry. The Company’s shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit www.atsautomation.com.

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