Philippines: SunPower closing 700MW Fab 2 with 2,500 job losses

Philippines: SunPower closing 700MW Fab 2 with 2,500 job losses

SunPower has announced further restructuring plans that include the closure
of its 700MW, IBC solar cell plant in the Philippines and a 25% reduction in
its global workforce. Image: SunPower

Updated: High-efficiency PV module producer and project developer SunPower
has announced further restructuring plans as competitive issues bite that
include the closure of its 700MW, IBC solar cell plant in the Philippines
and a 25% reduction in its global workforce.

SunPower had already announced plans to close its PV module assembly
operations (1GW capacity) in the Philippines with the total loss of 1,200
jobs. The company planned to shift production to its assembly plant in
Mexico.

In a conference call to discuss the restructuring activities, SunPower
management said that approximately 75% of the planned job losses would be
related to the closure of Fab 2, while the remaining job losses attributed
to the global corporate sector of the company.

"As we announced in our third quarter 2016 earnings release, given the
current market dislocation, we have made the strategic decision to implement
a broad restructuring program to position the company for sustained, long
term profitability," said Tom Werner, SunPower president and CEO. "We
believe that our restructuring initiatives will enable us to successfully
navigate through the current market transition and maximize cash flow while
successfully positioning the company for the next phase of industry growth."

SunPower said that it expected to incur total restructuring charges of
US$225 million to US$275 million through the end of 2017, which included
approximately 30% of total attributed in cash.

The company said it would record restructuring charges of at least US$150
million on a GAAP basis in the fourth quarter of 2016.

The company plans to achieve annual operating expenses of less than US$350
million in 2017 as well as substantially decrease 2016 inventory to improve
working capital and strengthen its balance sheet.

As a result, SunPower expected to reduce its capital expenditures by more
than 50% to approximately US$100 million in 2017. The majority of the capex
spend would be attributed to its next generation cell and module technology
as well as its complete PV solutions side of the business.

"This comprehensive restructuring program will enable us to successfully
navigate the current challenging industry conditions while positioning us
for success over the long term," said Chuck Boynton, SunPower chief
financial officer.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.pv-tech.org/news/sunpower-closing-700mw-fab-2-with-2500-job-losse
s

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com