Suntech announced the discontinuation of solar thin-film in conjunction with publishing its preliminary second quarter (Q2) results for 2010.
The decision was made as crystalline silicon solar cells have seen a “rapid cost reduction and improving competitiveness”. Suntech says it will restructure its Shanghai facility to focus on the manufacturing of crystalline solar cells.
The restructuring is expected to result in equipment non-cash impairment of US$50-55 million in Q2. Suntech is also facing costs related to investment and prepayments to Shunda.
Dr Zhengrong Shi, Suntech Chairman and CEO, says: “While the thin-film and Shunda related charges will significantly impact our second quarter financial results, they have no bearing on our core manufacturing operations which are performing very well.”
Suntech expects Q2 revenues to reach US$620-630m, and a net loss of around US$147-179m.
Shi, says: “Strong top line results for the second quarter reflect extremely robust global demand for solar. Customers in Europe, Asia, the Middle East and the Americas are increasingly recognising the benefits of adopting solar and are choosing Suntech as a key partner. Our expected operating results for the second quarter reflect our competitive advantages in these markets.”