China’s Suntech Power reduces solar cell production to cut cost

18 September 2012 07:41  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Suntech Power Holdings said late on Monday that it has temporarily closed a portion of solar cell production capacity in Wuxi, Jiangsu province, to reduce operating costs.

“In sight of the preliminary US anti-dumping tariff, the European anti-dumping investigation, and oversupply of solar modules, we have decided to right-size our production capacity and continue to optimize our organization,” said David King, Suntech Power’s CEO in a statement.

“With a smaller manufacturing base we will be able to lower production cost, increase utilisation rates and improve product performance,” he added.

After the restructuring, Suntech Power’s operational solar cell capacity will temporarily be reduced to 1.8 gigawatt (GW), module capacity will remain at 2.4GW and wafer capacity will remain at 1.6GW, the statement added.

The company did not disclose the previous capacity before the planned reduction.

Suntech Power is on track to reduce its operating expenses by 20% year on year in 2012 compared with 2011.

By: Dolly Wu
+65 6780 4359

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