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Q-Cells Slashes 500 Jobs as Part of 'Adjustment' Process
August 14, 2009Source: Clean Edge News
Q-Cells has announced a set of adjustment measures, including
workforce reduction by almost 20%, following losses in H1 2009.
Q-Cells has posted a 37.8% fall in sales in H1 2009, compared with the
same period in 2008 and an operating loss of 47.6 million euros ($68
million). In reaction to the losses, Q-Cells will apply a set of
measures called "Q-Cells Reloaded", in order to adjust to the new
environment. Crucially, the company decided to cut almost 20% of its
workforce and close production lines in Thalheim.
Q-Cells said that the cost structure of Thalheim production lines lies
"around 30% above the usually accepted level in international
competition" and therefore the board decided to shut them down. As a
result, "around 500 jobs will be cut permanently", resulting in a
reduction of a production cost of 25%.
Further measures include focusing on R&D in cells efficiency, mainly
through companies Silbro and Calyxo, where Q-Cells holds controlling
stakes. Q-Cells plans to achieve 20% efficiency by the end of 2011 and
further expand these companies in the future.
Finally, the company also said that in order to reinforce its in-house
financing, all investment projects and especially those for 2010,
would be reviewed and capital commitment reduced.
"To steer Q-Cells safely through the crisis and give the company a
long-term perspective at the Thalheim location, these measures
including a cut in personnel are unavoidable," concluded Anton Milner,
chairman of Q-Cells executive board.
Shares in Q-Cells fell almost 6% on the day of announcement and were
trading at 13.35 euros on Thursday afternoon.