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First Solar Reallocates Production Capacity at Malaysia Plant
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First Solar Inc. (FSLR - Free Report) ) announced that it is introducing changes to its production capacity at its Kulim, Malaysia, facility. The company plans to cease production of the TetraSun crystalline silicon solar panel product in order to support the Series 5 thin film photovoltaic module offering.
This move will result in impairment and related charges of about $90 million to $110 million and slash the company’s operating expenses by $2 million to $4 million this year and $8 million to $10 million annually thereafter.
First Solar said that this move is part of its long-range business plan, which focuses on maximizing its core Cadmium Telluride (CdTe) technology.
Reason Behind this Transition
First Solar’s TetraSun acquisition in 2013 was aimed at creating a break-through cell architecture that has the potential to convert 21% sunlight into electricity at lower manufacturing costs in comparison to conventional multi crystalline silicon solar cells.
First Solar's COO Tymen de Jong said, "TetraSun is a sound technology for space constrained rooftops, and served largely as a hedge against CdTe technology competitiveness that had challenged us in the past.”
Earlier this year, First Solar set a new world record research cell conversion efficiency of 22.1% for CdTe thin-film solar PV, certified at Newport Corporation's Technology and Applications Center (TAC) PV Lab.
First Solar also noted that its lead manufacturing lines produced PV modules with 16.4% conversion efficiency during the fourth quarter of 2015. CdTe and other thin film modules offer a higher yield per watt than standard crystalline silicon, mainly in hot climates, making them increasingly competitive.
First Solar expects the new unit to be completely operational by early 2017 with the latest production transition in place.
Zacks Rank
First Solar carries a Zacks Rank #3 (Hold). Some better-ranked players in the solar space include ReneSola Ltd. (SOL - Free Report) , 8point3 Energy Partners LP and Yingli Green Energy Holding Co. Ltd. , all sporting a Zacks Rank #1 (Strong Buy).
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First Solar Reallocates Production Capacity at Malaysia Plant
First Solar Inc. (FSLR - Free Report) ) announced that it is introducing changes to its production capacity at its Kulim, Malaysia, facility. The company plans to cease production of the TetraSun crystalline silicon solar panel product in order to support the Series 5 thin film photovoltaic module offering.
FIRST SOLAR INC Price
FIRST SOLAR INC Price | FIRST SOLAR INC Quote
This move will result in impairment and related charges of about $90 million to $110 million and slash the company’s operating expenses by $2 million to $4 million this year and $8 million to $10 million annually thereafter.
First Solar said that this move is part of its long-range business plan, which focuses on maximizing its core Cadmium Telluride (CdTe) technology.
Reason Behind this Transition
First Solar’s TetraSun acquisition in 2013 was aimed at creating a break-through cell architecture that has the potential to convert 21% sunlight into electricity at lower manufacturing costs in comparison to conventional multi crystalline silicon solar cells.
First Solar's COO Tymen de Jong said, "TetraSun is a sound technology for space constrained rooftops, and served largely as a hedge against CdTe technology competitiveness that had challenged us in the past.”
Earlier this year, First Solar set a new world record research cell conversion efficiency of 22.1% for CdTe thin-film solar PV, certified at Newport Corporation's Technology and Applications Center (TAC) PV Lab.
First Solar also noted that its lead manufacturing lines produced PV modules with 16.4% conversion efficiency during the fourth quarter of 2015. CdTe and other thin film modules offer a higher yield per watt than standard crystalline silicon, mainly in hot climates, making them increasingly competitive.
First Solar expects the new unit to be completely operational by early 2017 with the latest production transition in place.
Zacks Rank
First Solar carries a Zacks Rank #3 (Hold). Some better-ranked players in the solar space include ReneSola Ltd. (SOL - Free Report) , 8point3 Energy Partners LP and Yingli Green Energy Holding Co. Ltd. , all sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>