IQE finalises sale of closed Pennsylvania site

(Sharecast News) - Advanced compound semiconductor wafer products specialist IQE announced on Wednesday that it has finalised the sale of its decommissioned site in Bethlehem, Pennsylvania. The AIM-traded company said the sale would yield $2.5m immediately, with an additional $3m expected by the end of the year.

It said the closure of the Pennsylvania facility late last year marked a strategic shift in its North American operations.

Expertise, intellectual property, assets and customer relationships from the site were transferred to its larger facility in Greensboro, North Carolina.

The board said the consolidation aligned with its strategy to create a centre for advanced sensing, optical communications, aerospace, defense, and wireless markets.

IQE said the Greensboro facility benefited from significant local government support.

"The completion of the sale of our decommissioned Pennsylvania site will further strengthen our balance sheet, bringing in $5.5m in cash by the end of 2024," said interim chief executive officer and chief financial officer Jutta Meier.

"I am pleased to complete this milestone and the further consolidation of our manufacturing footprint."

At 1047 GMT, shares in IQE were up 3.6% at 12.87p.

Reporting by Josh White for Sharecast.com.