PV Crystalox nears cash return

The huge reported losses incurred last year reflect a €82.5m (£70.25m) impairment charge - mainly from the closing of a plant in Germany - and €83.5m of inventory write-downs and contract charges with raw materials suppliers. These were offset by a €90.6m gain on the cancellation of customer contracts.

Even though end user demand for solar power is growing, silicon wafer prices have crashed well below production costs, due to Asian overcapacity and oversupply issues. But Mr Dorrity points to spot prices having bottomed and even bounced slightly. He optimistically says: "I think we're at a tipping point for the industry", with Chinese companies being forced to "change their behaviour" and major supplier Suntec filing for bankruptcy last week. The European Commission investigation into wafer dumping is scheduled to report in June and imposition of duties on Asian supply would be favourable. While uncertainty persists, the plan is for the business to turn cash neutral this year by halving production and renegotiating supplier and customer contracts.