Suntech Power Holdings, the world’s largest manufacturer of solar panels, has experienced mixed fortunes over the last few months, largely thanks to an uncertain economy.
On the positive side of things, Suntech announced last week their crossing of the 1 gigawatt solar cell production capacity threshold and the opening of their new headquarters in Wuxi, China. The Wuxi facility includes the world’s largest grid connected solar facade system, made up of semi- transparent solar panels.
Yesterday, Suntech stated it had also entered into an exclusive agreement to license Open Energy’s building integrated solar roof membrane product. The membrane can be easily installed, even over existing roofs, with no structural reinforcement typically required. Under the terms of agreement, Suntech will undertake the worldwide manufacture, distribution, sales and marketing of the solar membrane. The product will be marketed by Suntech under the SolarEze brand name.
But it certainly hasn’t been all sunshine for the company of late. Yesterday, Suntech also announced it would be laying off 800 workers – around 10% of Suntech’s total workforce.
Suntech has also suspended a plan to expand capacity by 40 percent in 2009 and put the hiring of 2,000 new staff on hold for the time being. While it’s not great news for the company, investors may see moves such as this as Suntech simply being prudent in a shaky global marketplace where risk-taking high flyers are regularly being shot down.
Shares in Suntech have fluctuated greatly over the past year, valued at as little as USD$5 and as much as USD$70. Currently the shares are trading at around USD$10.81.
