Suntech Laid Off 10%, Factories Running at 50%–60% Capacity
Economic downturn prompted the world's largest solar panel maker to chop roughly 800 people from the payrolls, said Steve Chadima, vice president of external affairs at Suntech. The layoffs affected mostly contract factory workers, who were let go as the company reduced its production, Chadima added. Back in Novmber, Suntech trimmed its sales forecast for 2008, blaming the weak euro and credit crunch. The company has several factories in China, and the layoffs took place at the main factory near its headquarters in Wuxi. (...) He added that the company didn't cut salaries for the executives. Instead, managers didn't take the year-end bonuses for 2008 "to deal with financial challenges in the next few months." (...) The company's factories are running at 50 percent to 60 percent capacity, which falls in line with the guidance the company has given to investors. The company recently celebrated reaching a 1-gigawatt production capacity for its solar cells and panels.
[In the meantime] Suntech Power Holdings said Wednesday the market is brightening up a bit as it prepares for growth in the United States, France, Italy and Japan in 2009. The company estimates that solar panel demand in the United States could reach 400 megawatts to 700 megawatts in 2009, while the global market could take in more than 5 gigawatts, said Steven Chan, Suntech's chief strategy officer, during a conference call with analysts. Chan cautioned that the U.S. outlook depends largely on whether the stimulus package that President Obama signed only a day earlier could achieve its desired results.