Restructuring at STR Holdings to cost 160 jobs - SolarStar

PV module  encapsulant material supplier, STR  Holdings hit by the pending loss of its largest customer, First Solar, said that its restructuring efforts would result in a workforce reduction of approximately 160, or 32% of its global workforce.

According to 2012 SEC fillings, STR reported a global workforce of approximately 500, including full and part-time employees.

Headcount reductions relate to the planned closure of its manufacturing plant in East Windsor, Connecticut, as well as job losses at its manufacturing facilities in Spain and Malaysia. Job losses were also planned at its headquarters in Enfield, Connecticut.

In 2012, STR had a US-based backsheet nameplate capacity of 2.9GW and the same nameplate capacity at its plant in Spain. The East Windsor plant also housed a 20,000 square foot R&D facility. Backsheet nameplate capacity in Malaysia stood at 3.6GW in 2012 but had a potential capacity of 5GW.

The company also noted that it expected to incur restructuring charges totalling between US$15 million and US$20 million due to severance benefits, accelerated depreciation and impairment charges and other exit-related costs.

STR is also assessing fixed asset non-cash charges that may need to be recorded in its 2012 results of operations. However, STR noted that it expected between US$2 million to US$3 million of the restructuring charges to be cash expenses.