Challenging times for First Solar

First Solar has announced plans to restructure its operations to focus on newer photovoltaic modules.

The US company will phase out its current Series 4 thin-film panels over the next two years and start producing Series 6 modules, canceling its plans for Series 5 products.

The move will lead to job losses in the US and Malaysia as well as $500 to $700m in restructuring and asset impairment charges this year, it said.

First Solar has decided to accelerate its plans for Series 6 due to a competitive market in which the average selling prices for modules have dropped 30% this year.

The company now expects to produce about 3GW of the panels, which are three times larger than the current ones, in 2019.

“Following the completion of an internal review process to evaluate the best competitive response to address the current challenging market conditions, we have developed plans that will enable us to more quickly begin production of our Series 6 module,” First Solar chief executive Mark Widmar said.

Although the decision to accelerate our Series 6 roadmap requires a restructuring of our current operations, we expect the transition to Series 6 will enable us to maximize the intrinsic cost advantage of CdTe thin-film technology versus crystalline silicon,” he said.

“Recent steep module pricing declines require us to evaluate all components of our cost structure and streamline our business model to best position the company for long-term success.”

Image: First Solar