Celestica to to Exit Solar Panel Manufacturing Business
TORONTO -- Celestica will discontinue manufacturing of solar panels due to market instability and global oversupply, the company said.
The company took $21 million in restructuring charges in its fourth quarter ended Dec. 31 related to the closure of solar panel manufacturing operations at two locations, including a $19 million impairment charge to write down the carrying value of its solar manufacturing equipment to recoverable amounts.
The EMS firm said pricing and demand for solar panels continued to "negatively impact" its solar business in the quarter. Moreover, the firm added, the market is not expected to improve for some time, complicating its profitability.
"The turbulence in our solar panel business has negatively impacted our overall energy market offering, and therefore, our diversified end market. 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," Celestica said in announcing the decision.
