On January 4th, 2012 Satcon Technology Corporation (Boston, Massachusetts, U.S.) announced a set of cost reduction initiatives, including closing its Canadian inverter manufacturing facility and reducing its global workforce by 140 employees, roughly 35% of the total number of workers it employs.

The company states that the plan will allow it to improve its financial performance and align its global workforce and operations infrastructure. Satcon will focus product development and marketing efforts on turnkey solutions for commercial and utility solar photovoltaic (PV) markets, concentrating on North America, China, India and Thailand, as well as emerging Asia-Pacific markets.

"The compounding effects of reduced panel costs and market demand shifts toward North America and Asia have forced the entire industry to adjust as we enter the next phase of development," states Satcon President and CEO Steve Rhoades. "Decreasing prices, however, present significant opportunity for Satcon, where the demand for our large-scale inverter solutions nearly doubled in North America and Asia year-over-year."

"The measures we have announced today will help to ensure that Satcon achieves the financial strength required to profitably maintain our leadership position as the standard for large scale inverter systems as solar power generation becomes a more affordable and stronger investment worldwide."

Restructuring to save USD 15 to 17 million annually

The company states that it will concentrate product development on cost reduction and performance across its portfolio, including its Prism Platform, as well as restructuring its office and warehouse infrastructure in Europe, China and the United States.

Satcon is currently seeking a partner to supply a contract manufacturing facility so that it can continue to supply inverters to the Ontario PV market which comply with the province's local content requirement in its feed-in tariff.

Satcon states that the layoff of workers and closure of its Canadian facility will result in charges between USD 2.8 and 3.0 million, the majority of which it expects in the fourth financial quarter of 2011.

As a result of these changes, Satcon expects ongoing savings between USD 15 and USD 17 million annually, by the time all actions are implemented in the second quarter of 2012.

2012-01-05| Courtesy: Satcon Technology Corporation | solarserver.com © Heindl Server GmbH

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