Categories: CleanTech BitesSolar

Silex Systems closes Homebush solar PV manufacturing plant

Published by

Silex Systems has abandoned plans to revive its solar panel manufacturing plant in Sydney’s Olymic Park, and has announced its immediate closure and decommissioning.

Silex bought the then mothballed plant from BP Solar for $6.5 million in 2009, but ceased production of solar cells in August last year as part of a restructuring. It then mothballed the module manufacturing again in November, but after resuming limited production in February, it has now decided to cut its losses after trading conditions failed to improve.

CEO Michael Goldsworthy blamed the “triple whammy” of cheap Chinese modules flooding the market, the high Australian dollar, and inadequate government support.

“While significant progress has been made towards restructuring the SilexSolar business, to the point where the business has been operating on a cash flow neutral basis for the last few months, the continuation of challenging market conditions has frustrated attempts to secure a profitable market niche and has thus necessitated the full closure of our manufacturing plant,” he said.

The closure will result in a one-off negative cash impact of $4.8 million from the cost of settling leases, decommissioning and redundancy costs, and a balance sheet write down of $5.2 Million.

Goldsworthy said SilexSolar will continue to progress some commercial-scale project work already underway, and will also continue to support existing installed product warranties, but he sounded downbeat about the future of that part of the business.

“It’s still a price driven business, it’s pretty difficult to compete,” he told RenewEconomy. He noted the US anti-dumping action against Chinese manufacturers and said the same thing should happen here.

Goldsworthy told RenewEconomy in February that the company was working on numerous opportunities, including a possible bid into the ACT Government’s large scale solar auction. He would not comment on the result of that bid, although it is thought Silex did not make the shortlist of bidders.

Around 100 people may have lost their jobs all told. The August closure resulted in the loss of about 30 manufacturing jobs, while suspension of the panel manufacturing caused another 45 workers to be retrenched. Around 20 people remained employees of SilexSolar.

Giles Parkinson

Giles Parkinson is founder and editor of Renew Economy, and of its sister sites One Step Off The Grid and the EV-focused The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Share
Published by

Recent Posts

Yes to Paris, no to targets: Dutton’s climate doublespeak causes confusion in Coalition ranks

Peter Dutton says a Coalition government won't follow Trump out of the Paris agreement, but…

24 January 2025

Massive 70 GW wind and solar project that straddles Nullarbor seeks federal green tick

The world’s biggest wind, solar and green ammonia project joins queue seeking federal environmental approval…

24 January 2025

Halting new wind farms while coal plants buckle: Is this the LNP’s plan for Queensland?

With three coal units unexpectedly down in the middle of a heatwave, it's an interesting…

24 January 2025

Complex electricity tariffs doing more harm than good, as consumers fall through the knowledge gap

Time-of-use electricity tariffs might be the way of the renewable future, but a new study…

24 January 2025

Solar charts record growth to overtake coal in EU power mix, send fossil fuels to 40-year low

Solar power output in the EU has more than tripled over the past decade and…

24 January 2025

Australia’s moment: How Trump’s fossil turn can supercharge our energy revolution

The transition to renewable energy and clean transport is a gold rush – and with…

24 January 2025