First Solar And Sunpower: A Retreat To Sustain Cost Advantages

Wed, 04/18/2012 - 14:49 EDT - Seeking Alpha

By Kevin Quon:The American solar power industry took another blow on the chin in the ongoing battle of consolidation on Tuesday as two of its remaining public solar companies took progressive steps toward slimming down operations. First Solar (FSLR) based in Tempe, Arizona, and Sunpower (SPWR) based in San Jose, California, both revealed plans to draw back their production capacity in light of shifting dynamics within the industry.First Solar announced it would be closing its Frankfurt (Oder) manufacturing facility. It would also idle indefinitely four of its 24 existing lines in Malaysia, as of May 1, 2012. Additionally, it would drastically reduce its global work force by about 30%, cutting 2000 positions worldwide. In doing so, the company expects to save $30-60 million in costs this year, and $100-120 million annually going forward. With these measures, First Solar realistically expects the following cost-per-watt advantages to mature:
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First Solar And Sunpower: A Retreat To Sustain Cost Advantages

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