Photowatt Ontario Inc., a subsidiary of ATS Automation Tooling Systems Inc. will be supply photovoltaic modules for a solar power company serving the Ontario market.
CAMBRIDGE, Ont.: Photowatt Ontario Inc., a subsidiary of ATS Automation Tooling Systems Inc. will be supply photovoltaic modules for a solar power company serving the Ontario market.
The supply agreement with Hanwha SolarOne (Qidong) Co. Ltd., a subsidiary of Hanwha SolarOne Co. Ltd., will involve the production of 160 megawatts of Hanwha SolarOne photovoltaic modules for the Ontario marketplace over four years. Photowatt will be using Hanwha SolarOne cells for the modules.
The agreement allows for the potential of both parties to increase volumes by up to another 160 megawatts over the four-year period.
The modules, to be produced at Photowatt’s module facility in the Green Wing of the ATS campus in Cambridge, Ont. will be fully compliant with FIT and Micro FIT Program domestic content requirements.
Shipments are to begin in October.
ATS Automation Tooling Systems announced today it has booked a loss in its fourth quarter of 2011, saying it suffered from poor performance at its Photowatt solar energy division.
The southwestern Ontario-based maker of machinery and equipment for industrial and automotive markets reported a net loss of $15.7 million for the quarter that ended March 31, compared to a profit of $2.1 million a year earlier. Revenues went up to $198.9 million compared to $138.8 million a year ago.
The company said its Photowatt division reported a loss from operations of $31.3 million compared to a loss of $42.4 million a year ago.
ATS said Photowatt’s loss reflected low volumes due to difficult market conditions in the global solar industry, particularly in France where a government-imposed moratorium on certain new solar installations caused a reduction in demand and average selling prices in the fourth quarter.
It also said the loss reflected increasing operating costs due to work stoppages and slowdown due to restructuring at Photowatt.
The company’s board has approved a plan to separate Photowatt from the company as a spinoff and it is simultaneously also trying to sell Photowatt France.
Files from Canadian Press