First Solar Shifts Malaysian Production Capacity to Series 5 Assembly
July 05 2016 - 8:20AM
Business Wire
TetraSun product line discontinued to accommodate
reallocation
First Solar, Inc. (Nasdaq: FSLR) announced today that it is
reallocating production capacity at its Kulim, Malaysia, facility
to support a new assembly line dedicated to the company’s recently
announced Series 5 thin film photovoltaic module offering. As a
result, First Solar will end production of its TetraSun crystalline
silicon solar panel product currently manufactured there, and
expects to incur impairment and related charges of approximately
$90 million to $110 million, substantially all of which is expected
to be non-cash. These actions are expected to reduce First Solar’s
operating expenses by $2 million to $4 million this year and $8
million to $10 million annually going forward.
The shift in production capacity is driven by First Solar’s
long-range business plan, which focuses on maximizing the company’s
core technology based on the thin film Cadmium Telluride (CdTe),
according to Chief Operating Officer Tymen de Jong.
“Over the past two years, execution of our CdTe technology
roadmap has positioned the product as the industry leader for
utility-scale solar, as well as established a promising path into
the future. The Series 5 module, and the Series 6 module still in
concept development, are game-changing products that position us
for exciting growth. They require the full attention of our
manufacturing operations,” said de Jong.
“TetraSun is a sound technology for space constrained rooftops,
and served largely as a hedge against CdTe technology
competitiveness that had challenged us in the past,” he added.
“With the success of our CdTe roadmap reflected in our record 22.1%
cell efficiency, along with the proven higher energy yield and
superior performance inherent in our thin film technology, that
hedge is no longer needed.”
With this production transition, virtually all of the Kulim
production associates previously assigned to the TetraSun line will
move to the Series 5 assembly line, which will be in full
operational mode by early 2017.
About First Solar, Inc.
First Solar is a leading global provider of comprehensive
photovoltaic (PV) solar systems which use its advanced module and
system technology. The company’s integrated power plant solutions
deliver an economically attractive alternative to fossil-fuel
electricity generation today. From raw material sourcing through
end-of-life module recycling, First Solar’s renewable energy
systems protect and enhance the environment. For more information
about First Solar, please visit www.firstsolar.com.
For First Solar Investors
This release contains forward-looking statements which are made
pursuant to safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include statements, among other things, concerning: effects on our
financial statements and guidance resulting from pending tax
matters; our business strategy, including anticipated trends and
developments in and management plans for our business and the
markets in which we operate; future financial results, operating
results, revenues, gross margin, operating expenses, products,
projected costs (including estimated future module collection and
recycling costs), warranties, solar module efficiency and balance
of systems cost reduction roadmaps, restructuring, product
reliability, investments in unconsolidated affiliates and capital
expenditures; our ability to continue to reduce the cost per watt
of our solar modules; our ability to reduce the costs to construct
PV solar power systems; research and development programs and our
ability to improve the conversion efficiency of our solar modules;
our ability to expand manufacturing capacity worldwide; sales and
marketing initiatives; and competition. These forward-looking
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about future events. You should not place undue reliance on these
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These factors include, but are not limited to, the matters
discussed in Item 1A: "Risk Factors," of our most recent Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other reports filed with the SEC.
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First Solar MediaSteve Krum+1
602-427-3359steve.krum@firstsolar.comorFirst Solar InvestorsStephen
Haymore+1 602-414-9315stephen.haymore@firstsolar.com
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