ROCHESTER HILLS �?? While the long term future for solar energy is bright, short term the global economic meltdown has even caught up with Energy Conversion Devices, which said Monday it will lay off 70 people at its solar panel production plat at the older of its two Auburn Hills factories.
Energy Conversion also said economic conditions would force it to halt production for two weeks, starting March 22. What�??s more, the company said it will defer the purchase of equipment and hiring of operating personnel. It’s also minimizing the use of temporaries and consultants.
The company blamed “the present impact of credit availability on project flow in the global pipeline for photovoltaics.”
ECD also announced that “because of the lack of visibility caused by the current economic conditions, its prior third quarter and full fiscal year 2009 guidance is no longer applicable.”
Issued Feb. 9, EDC said the third fiscal quarter would result overall in revenue of $95 million to $110 million, of which $90 million to $105 million would come from solar product sales. That compares to revenue of $70 million in the third quarter a year earlier. ECD said it now believes that “solar product revenue for the fiscal third quarter will approximate the results from the same period a year ago.�?�
The company said it would consolidate some production from its oldest solar panel plant, Auburn Hills 1, into the newer Auburn Hills 2. About 130 employees will be relocated to Auburn Hills 2 as a result. The consolidation will result in a permanent reduction of approximately 70 positions from the remaining operations at Auburn Hills 1. These individuals will receive severance and outplacement services and will also have the opportunity to apply for future jobs at ECD facilities.
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