13 September 2012
Posted in News - SPVI news
Furthermore, layoffs are also expected as the company said that it plans “some headcount reductions” to reduce operational expenses
One of the leading Chinese PV manufacturers, Trina Solar Limited (ADR) (NYSE:TSL), has decided to split its manufacturing business unit and power plant development unit. The organizational structure is being streamlined to make it more cost effective.
Furthermore, layoffs are also expected as the company said that it plans “some headcount reductions” to reduce operational expenses. In August, Trina Solar announced the second quarter results recording a 40% decline in sales year-on-year to $346.1M, while its operational expenses were $107M; this translated into an operating loss of $78.6M. Shipment guidance were also reduced by 17% as the amount of inventories nearly doubled.
Thomas Young, the company’s VP for Investor Relations, has said that there are going to be cuts in some “significant resources.” “It’s a large task, obviously. You have growth in some areas and transition in others.” Mr. Young said.
Although the exact number of layoffs is not yet known, SPVI has learned from Solarzoom Market Centre that around 1,850 including 200 managers out of 15,000 employed are going to lose their jobs. Moreover, the company is operating under 75% utilization.
The sharp decline in panel prices around the world has pushed some firms towards bankruptcy, while the survivors are piling up losses. On the management front, Trina Solar has gone through a complete reshuffle that included axing the business’s CCO, Mark Kingsley, and dividing the business into four regions, with each regional head working directly under the CEO.
In another move, Trina Solar has launched a new program in the U.S. called “Trina Solar Partner Plus,” which will help Trina’s customers, specifically the distributers and installers, to “capture more business” through a variety of marketing and sales initiatives. To participate, firms can register themselves on the company website and earn points by purchasing products. The points can then be redeemed against specific marketing tools such as exclusive product offers or training & development. This would be the first significant news coming from Trina Solar Americas after SunEdison North America’s president and G.M. Mark Mendenhall joined Trina Solar Americas as the region’s president. SunEdison is a subsidiary of MEMC Electronic Materials, Inc. (NYSE:WFR).
Earlier this week, the Boston Consulting Group released a list of 50 Chinese Global Challengers that are growing rapidly and are becoming dominant players in their respective global industries. The list includes organizations such as Lenovo, Haier Electronics and ICBC. From the solar sector, Trina Solar was able to make the cut. Commenting on this, the company’s chairman and CEO Mr. Jifan Gao said, “We are delighted to have been named by BCG as one of the 50 Chinese Global Challengers, which recognizes Trina Solar's increasing global presence.”
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