Nov. 15, 2012
/PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), the world's largest producer of solar panels, will stop two of three production shifts and reduce its workforce at its
, solar panel manufacturing facility. The slowdown in production is due to global oversupply and higher production costs related to recent import tariffs imposed by the U.S. government.
facility's annual production throughput will decrease from about 45MW to 15MW, and roughly fifty positions will be eliminated. The decision is in line with Suntech's global restructuring efforts to right-size production capacity and reduce operating expenses by 20% in 2012 and 2013.
"We will continue to produce solar panels in
to meet the needs of our customers, particularly those who are willing to pay a premium for U.S.-manufactured products," said E.L. "Mick" McDaniel, Managing Director of Suntech America. "Our employees in
have done a tremendous job, however all PV manufacturers globally are facing challenging market and political conditions, and rationalizing production is necessary to maintain a competitive cost structure."
, the U.S. International Trade Commission voted to impose unilateral tariffs of 35.97% on Suntech solar cells produced in
. Solar cells are a key component used at Suntech's
production facility. The rising costs of components like solar cells increases the costs of manufacturing solar panels in the U.S. Tariffs on solar cells come in addition to tariffs imposed by the U.S. government in 2011 on aluminum frames, another key input for solar panel manufacturing.
"Subsequent to our decision to invest in
, unnecessary upstream trade barriers have made it difficult and more costly to manufacture solar panels in the U.S. In addition, these new tariffs limit our ability to utilize Suntech's advanced solar cell technology imported from
," added Mr. McDaniel. "We will continue to assess our options and if the political and business environment improves, we may reconsider expanding our manufacturing operations in the U.S."
, manufacturing facility features highly-automated manufacturing and product testing equipment and currently produces Suntech's 300-watt solar panels for commercial and utility-scale electricity generation. All solar panels produced at the facility are backed by an industry-leading, 25-year power output warranty and are compliant for procurement in American Recovery and Reinvestment Act (ARRA) and Buy American Act projects.
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces industry-leading solar products for residential, commercial, industrial, and utility applications. With regional headquarters in
, and the
, and gigawatt-scale manufacturing worldwide, Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. Suntech's pioneering R&D creates customer-centric innovations that are driving solar to grid parity against fossil fuels. Suntech's mission is to provide everyone with reliable access to nature's cleanest and most abundant energy source.
For more information about Suntech's people and products visit
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements, and includes Suntech's ability to right-size production capacity; reduce operating expenses by 20% in 2012 and 2013; and ability to maintain a competitive cost structure. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in Suntech's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Suntech does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.