Energy Conversion Devices (ECD), a manufacturer of solar thin-films, has suspended manufacturing and will lay off 400 workers. ECD is stopping production due to an oversupply of solar panels and crushing prices.
Solar thin-film maker Energy Conversion Devices (ECD), which has factories in Michigan, Canada and Mexico, has suspended manufacturing and will furlough 400 workers. ECD is just one of the companies with problems this year because of an oversupply of solar panels, combined with crushing prices.
According to the Michigan-based company, it needs to stop production because it has made more solar panels than it can sell. The company opened a plant in Ontario, Canada, earlier this year, hoping to take advantage of the regional market’s generous government subsidies, but has since been struggling to grow and make money.
While many solar companies experienced important increases in sales and profits in 2010, Energy Conversion had to implement cost-cutting plans and moved some of its manufacturing to Mexico. More cost-cutting measures were implemented earlier this year, including layoffs, and the company is now expecting to lay off another 500 workers by the end of this year.
Energy Conversion’s shares dropped 35%, reaching USD 0.40 per share in recent trading.
Many manufactures have filed bankruptcy (Solyndra, SpectraWatt, Evergreen Solar), while others have closed factories or reduced production at existing factories. First Solar started building a factory in Vietnam earlier this year but has put that plan on hold because it, too, needs to cut costs. Suntech Power, the largest silicon solar panel maker, has announced that it will not be expanding manufacturing in 2012.