Friday 29 Mar 2024
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KUALA LUMPUR (July 19): Shares of Tek Seng Holdings Bhd fell 5.08% this morning after the company said its 50.69%-owned subsidiary TS Solartech Sdn Bhd has decided to temporarily stop its photovoltaic (PV) production activities in Penang in the third quarter of this year.

At 9.36am, Tek Seng fell 1.5 sen to 28 sen with 503,200 shares done.

The temporary halt of TS Solartech's operations will affect 118 workers, who will be made redundant.

Tek Seng said the continuing intense competition in the solar industry coupled by the eroded prices of the solar cells due to excess inventory in the supply chain had posted a very tough and challenging operating environment for TS Solartech.

"Further, the export sales of TS Solartech have been significantly affected due to the US safeguard tariffs over a period of four years and India safeguard tariffs over a period of two years, on importation of solar cells and modules from Malaysia," Tek Seng said in a filing with Bursa Malaysia today.

Tek Seng said the move will have a financial effect on the group for the financial year ending Dec 31, 2018 as a result of the one-off redundancy cost and impairment loss on assets to be incurred.

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