Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ferrotec to Cut 800 Jobs, Restructure Solar Silicon Business

Nov. 7 (Bloomberg) -- Ferrotec Corp., a Japanese maker of electronic components, plans to cut about 800 jobs across the company as it restructures its solar product business.

Ferrotec will stop making and selling silicon ingots, wafers and cells used for solar panels under its own brand, the Tokyo-based manufacturer said today in a statement. It will produce them for other companies.

Ferrotec and its peers have grappled with lower prices for panels as Chinese producers flood the market, economies stagnate and governments curb subsidies for renewable energy. The oversupply has contributed to losses for the Japanese company, which revised its half-year earnings forecast today.

“The business environment for the solar-panel market has deteriorated rapidly since the second half of last year,” the company said in the statement. “We made plans to restructure through mainly reducing the size of our business.”

Ferrotec will close a plant in the U.S. state of Oregon that makes crucibles, devices used to produce silicon ingots, said spokesman Takanori Hirose, who couldn’t immediately comment on how many jobs there will be affected. Company executives will also take a pay cut of as much as 50 percent for the nine months through June, according to the statement.

Ferrotec expects to report a net loss of 6.2 billion yen ($77.2 million) for the six months through September, having previously forecast a loss of 650 million yen.

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.