STR Holdings: Closing of Malaysia Facility
Die untenstehende Meldung ist eine Original-Meldung des Unternehmens. Sie ist nicht von der ECOreporter.de-Redaktion bearbeitet. Die presserechtliche Verantwortlichkeit liegt bei dem meldenden Unternehmen.
ENFIELD, Connecticut - STR Holdings, Inc. (NYSE:STRI) announced its decision to close its Malaysia facility.
The Company plans to cease operations at its Malaysian encapsulant production facility, effective August 2, 2015, following a recent decision by the Company's largest customer to exit its OEM module production in Malaysia. The Company expects to continue to fulfill orders to this customer from its Spain and China facilities.
Other factors contributing to the decision to close the plant include underutilization, increasing costs in Malaysia resulting from the recent introduction of a Goods & Services Tax (GST), and the newly launched investigation by the European Commission that may result in anti-dumping and countervailing duties on solar cells and modules consigned from China and assembled in Malaysia and Taiwan.
"We have enjoyed much success over the years in Malaysia and owe a debt of gratitude to our loyal employees, the Malaysian Government and the Port of Tanjung Pelepas," said Robert S. Yorgensen, the Company's Chairman, President and CEO. "Unfortunately, the conditions at our factory in Malaysia have changed to the point where it is no longer economical to continue production. On a positive note, we expect the closure and liquidation of assets at this facility to ultimately strengthen our cash position and increase utilization in our Spanish and Chinese factories as work is repositioned."
The Company is in the process of engaging agents to sell its Malaysian real estate, recently appraised at approximately $8 million, as well as the associated production and ancillary equipment. The Company expects to incur approximately $1.0 million to $1.5 million of associated non-recurring severance and other exit costs during the second half of 2015, partially offset by the sale of production and ancillary equipment, and further expects to generate approximately $2.4 million of associated annual pre-tax savings on a going forward basis. The Company plans to transfer its Malaysian raw material inventory to the Company's existing Spain and China manufacturing facilities, which will continue to operate in the normal course.
STR's Vice President and Chief Financial Officer, Joseph C. Radziewicz, stated, "We want to thank our outstanding employees at our Malaysia facility for their dedicated years of service to STR since this plant's inception in 2008. Although the decision to close our Malaysia facility is a very difficult one, it is a critical step in focusing our resources and the sale of this underutilized asset should unlock capital and liquidity that can be redeployed with the intent of increasing stockholder value."
On-Going Assessment of Our Business and Strategic Alternatives
The Company is actively monitoring and evaluating its financial and operational performance, including sales levels, new customer wins, and its cash position. The Company continues to work closely with its majority shareholder, Zhenfa, to strengthen its encapsulant business and further evaluate and develop other synergistic opportunities arising from the December 2014 transaction between the two companies.
About STR Holdings, Inc.
STR Holdings, Inc. is a provider of encapsulants to the photovoltaic module industry. Further information about STR Holdings, Inc. can be obtained via the Company's website at www.strsolar.com.