First Solar Inc, the largest thin-film panel maker, will cut about 30 per cent of its workforce, shutting manufacturing plants in Frankfurt, Germany and indefinitely idling four production lines in Malaysia this year because of a deteriorating European market.
The closures will result in about 2,000 job cuts, the Tempe, Arizona-based company said in a statement today. First Solar expects to pay US$245 million to US$370 million as a result of the job cuts and plant closures. Cost savings associated with the cuts will reduce manufacturing costs to 70 cents to 72 cents a watt this year, the company said.
“After a thorough analysis, it is clear the European market has deteriorated to the extent that our operations there are no longer economically sustainable,” Mike Ahearn, First Solar’s chairman and interim chief executive officer, said in the statement.
The announcement was made before the start of regular trading in New York. First Solar gained 2.9 per cent to US$21.43 at 8:30 a.m.. Before today, the shares had dropped 38 per cent this year. -- Bloomberg
Read more: First Solar shuts Malaysian plants http://www.btimes.com.my/Current_News/BTIMES/articles/20120417212022/Article/index_html#ixzz1sLa17ncv
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