Suntech to Close Arizona Factory
GOODYEAR, Ariz. and WUXI, China, March 12, 2013
GOODYEAR, Ariz.and WUXI, China, March 12, 2013 /PRNewswire/ -- Suntech Power
Holdings Co., Ltd. (NYSE: STP), one of the world's largest producers of solar
panels, will stop production at its Goodyear, Arizona, solar panel
manufacturing facility on April 3, 2013, with forty-three employees affected.
Higher production costs exacerbated by import tariffs on solar cells and
aluminum frames imposed by the U.S. government, as well as global solar module
oversupply, contributed to the facility's closure. The decision is in line
with Suntech's global restructuring efforts to rationalize production capacity
and reduce operating expenses by 20 percent in 2013.
"We want to thank our employees in Goodyear for their hard work and
professionalism, as well as the Goodyear and Phoenix communities for their
steadfast support of Suntech over the past several years," said E.L "Mick"
McDaniel, Managing Director of Suntech America. "These are the growing pains
of a maturing industry; although it's a tough time to be a solar manufacturer,
there's never been a better time to be a solar customer."
On November 7^th, the U.S. International Trade Commission voted to impose
unilateral tariffs of 35.97% on Suntech solar cells produced in China, a key
component used at Suntech's Goodyear production facility. The tariffs on solar
cells came in addition to tariffs imposed by the U.S. government in 2011 on
aluminum frames, another key input for solar panel manufacturing. Both tariffs
have made it more challenging for Suntech to cost-effectively manufacture
solar modules in the U.S.
Suntech's Goodyear, Arizona, manufacturing facility opened in October 2010.
The facility reached peak production of 50MW per year in 2011. In November
2012, the facility's production throughput was scaled back to 15MW per year.
"Rationalizing production capacity is necessary to improve our manufacturing
utilization and help Suntech to return to profitability," said David King,
Suntech's Chief Executive Officer. "We're hopeful that these tough decisions
will help put Suntech back on track for growth."
Suntech Power Holdings Co., Ltd. (NYSE: STP) produces industry-leading solar
products for residential, commercial, industrial, and utility applications.
With regional headquarters in China, Switzerland, and the
United States, and gigawatt-scale manufacturing worldwide, Suntech has
delivered more than 25,000,000 photovoltaic panels to over a thousand
customers in more than 80 countries. Suntech's pioneering R&D creates
customer-centric innovations that are driving solar to grid parity against
fossil fuels. Suntech's mission is to provide everyone with reliable access to
nature's cleanest and most abundant energy source.
For more information about Suntech's people and products visit
Safe Harbor Statement
This press release contains forward-looking statements. These statements
constitute "forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements,
and includes stopping production at the Goodyear factory. Such statements
involve certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements. Further
information regarding these and other risks is included in Suntech's filings
with the U.S. Securities and Exchange Commission, including its annual report
on Form 20-F. Suntech does not undertake any obligation to update any
forward-looking statement as a result of new information, future events or
otherwise, except as required under applicable law.
SOURCE Suntech Power Holdings Co., Ltd.
Contact: Julie Lydon, Weber Shandwick for Suntech, +1-415-262-5958,
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