Solyndra to close old production facility on competition issues - report

(ADPnews) - Nov 4, 2010 - US photovoltaic (PV) systems provider Solyndra Inc plans to announce the shut-down of an old production plant, as it seeks to reduce costs and deal with Chinese competition after opening a new robotic factory this autumn, CEO Brian Harrison told The New York Times.

The move is provoked by the increased pressure exerted on companies such as Solyndra by the expanded production of Chinese sector players, which results in falling prices for solar modules. To close its older plant, the US firm will have to cut some 40 permanent jobs and 150 temporary ones. This will save over USD 60 million (EUR 42.7m) in capital expenditures.

"We're adjusting our plans to be more in line with where the market is and where our business is at the moment," Harrison said.

In an initial public offering (IPO) prospectus from December 2009, Solyndra projected that its capacity would reach 610 MW by 2013, a figure that now goes down to 285-300 MW. Listing plans were dropped in June due to market conditions. Still, the company opened a USD-733-million production unit in September, with a USD-535-million federal loan guarantee.

Harrison said that Solyndra's solar panel output will double in 2011, compared to a year before. If market conditions improve, the older production facility may be reopened or the new factory may be expanded, he added.

(USD 1.0 = EUR 0.713)

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