Suntech Power Holdings Company Ltd. (Wuxi, China) has announced that it will stop two of three production shifts and reduce its workforce at its solar photovoltaic (PV) module manufacturing facility in the U.S. state of Arizona.

Production will decline from 45 MW annually to 15 MW, with fifty positions eliminated at factory in Goodyear, Arizona. Suntech states that this is in line with its global restructuring efforts, but also blames the impacts of multiple U.S. tariffs.

"We will continue to produce solar panels in Arizona to meet the needs of our customers, particularly those who are willing to pay a premium for U.S.-manufactured products," said Suntech America Managing Director E.L.  McDaniel.

"Subsequent to our decision to invest in Arizona, unnecessary upstream trade barriers have made it difficult and more costly to manufacture solar panels in the U.S. In addition, these new tariffs limit our ability to utilize Suntech's advanced solar cell technology imported from China."

Suntech to "right-size" production

Through its restructuring, Suntech states that it plans to bring production capacities in line with global demand, as well as reducing operating expenses 20% in 2012 and 2013.

Suntech also blames the recent International Trade Commission (ITC) ruling imposing tariffs on Chinese-made PV cells and modules made with those cells, as well as tariffs imposed by the U.S. government on aluminum frames in 2011.

The company notes that if the business environment improves, it may reconsider expanding its manufacturing operations in the United States. Suntech produces its 300 watt modules at the Goodyear facility, which are backed by its 25-year warranty.

2012-11-19 | Courtesy: Suntech | solarserver.com © Heindl Server GmbH

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