Forgot your account information?  |  Create a CME account

Renewable energy maker plans restructuring

Published by Steve Coleman on January 04, 2012

A US maker of inverters for renewable energy sources says it will close its Canadian factory and trim staffing levels 35 per cent to concentrate on the North American and Asian markets.

Satcon Technology Corp. says it plans to close its Canadian manufacturing site, the company does hope to partner with a contract manufacturer to keep Ontario production running.

While the European market has slowed to a crawl, Satcon says the resulting lower prices in the last year present the business with a "significant opportunity" to do business in the other markets.

Satcon says its restructuring will result in charges of $2.8-$3 million, probably in the fourth quarter. The layoffs will affect about 140 employees worldwide.

The company will also take a closer look at its inventory and decide whether it will write down the value or take a mostly non-cash charge between $20-$26 million. By the end of this year's second quarter, the restructuring is expected to save the business between $15-$17 million a year.

The decision to focus on North America was helped by the fact the company says it did 91 per cent of its business in North America in the third quarter of 2011.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan