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Dec 18th, 2012
 
Sunways to cut 40% of workforce
 
The market environment for the German solar manufacturing industry changed drastically in the past few years.
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  • The company will concentrate on specialist solar cells for the automotive sector and building-integrated photovoltaics (BIPV).
  • Standard solar cell production capacities at Sunways Production GmbH will be reduced.

Market prices for photovoltaic components decline continuously. Against this background and in view of Sunways AG’s difficult economic situation, the Management Board, with the consent of the Supervisory Board, passed a resolution on the Group’s extensive restructuring and realignment. The business model with respect to solar modules and inverters will be adapted. Standard solar cell production capacities at Sunways Production GmbH will be reduced, simultaneously activities will concentrate on specialist solar cells for the automotive sector and building-integrated photovoltaics (BIPV). The utilization of synergies with the LDK Solar Group, the company’s majority shareholder, will be consistently expanded. The envisaged changes will inevitably involve staff reductions across all functional areas and locations of the Group. The resulting total cost reductions will have a positive effect on the earnings development of Sunways and thus support the company’s funding efforts.
 
Numerous manufacturers worldwide are currently subject to economic strains and do not generate profits. The market prices for solar products and thus the net earnings margins generated by companies declined drastically in the past two years – e.g. the prices for solar modules dropped by more than 50 percent, the prices for solar cells by up to 60 percent. On the market side, this was mainly due to global excess capacities but also to uncertain political framework conditions with respect to renewable energies that are changing at ever decreasing intervals in many countries.
 
The Sunways Group’s economic situation increasingly deteriorated in the past quarters. Due to continuous losses, the reported equity capital was reduced drastically. In view of continuously declining prices, which cannot be offset on the cost of materials side, the current situation is not expected.

 

 
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