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January 30, 2013

STR to lay off 160, take $20M in charges

STR Holdings of Enfield will lay off a third of its workforce to compensate for the loss of its largest customer, First Solar, Inc.

Troubled solar manufacturer STR Holdings, Inc. of Enfield plans to lay off 160 employees this year – representing a third of its employees – and face up to $20 million in restructuring costs, according to company filings.

The company, which makes encapsulants that protect photovoltaic cells in solar panels, is trying to recover from its Jan. 22 announcement that its principal customer First Solar, Inc. would sever ties with Enfield firm by the end of the first quarter.

STR previously announced it was closing its 275,000-square-foot East Windsor facility, which it purchased in 2011.

The planned 160 job reductions in its labor and production workforce will be spread across its facilities in Enfield, Spain, and Malaysia, along with other cost reduction measures, the company wrote in a Jan. 28 filing with the U.S. Securities and Exchange Commission.

The company currently has fewer than 160 employees.

STR expects to incur $15 million to $20 million in restructuring charges, including severance benefits, accelerated depreciation and impairment charges. The company anticipates up to $3 million of the charges to be cash expenses.

STR said in the filing it would provide more details on the job reductions and other cost savings measures when it files its annual report.

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