- Invest in profitable and sustainable customer relationships. Suntech will continue to drive technology innovation and focus on providing exceptional products and service to solar industry partners who value levelized-cost-of-electricity over installed price per watt.
- Right-size production capacity. In order to increase manufacturing utilization and reduce production cost, Suntech has temporarily reduced PV cell capacity to 1.8GW and will maintain wafer capacity at 1.6GW and module capacity up to 2.4GW. Going forward, the Company will leverage its global supply chain to navigate trade protectionism and fluctuations in demand.
- Cut production cost. Suntech will continue to measure cost inputs, evaluate performance against best-in-class benchmarks, and maintain a highly competitive cost structure, without compromising quality and performance. By the end of 2012, Suntech targets a module non-silicon cost structure of approximately 55c per watt, a 30% reduction from the end of 2011.
- Streamline operating structure. The Company will continue to streamline operations to eliminate overlap and improve operational and process discipline. Suntech is on track to achieve a 20% reduction in annualized operating expenses (excluding non-recurring items) in 2012, compared to 2011. The Company will continue its cost reduction initiatives in 2013 and adjust operations to match market conditions.
- Improve financial position. Suntech is committed to extending the maturity of credit facilities and continuing to reduce total debt and related interest expenses. Suntech has retained the UBS Investment Bank to evaluate alternatives to address its convertible notes due March 2013.
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