First Solar To Reallocate Malaysian Production Capacity To Series 5 Assembly

(RTTNews) - First Solar Inc. (FSLR) announced that it is reallocating production capacity at its Kulim, Malaysia, facility to support a new assembly line dedicated to the company's recently announced Series 5 thin film photovoltaic module offering.

As a result, First Solar will end production of its TetraSun crystalline silicon solar panel product currently manufactured there, and expects to incur impairment and related charges of about $90 million to $110 million, substantially all of which is expected to be non-cash. These actions are expected to reduce First Solar's operating expenses by $2 million to $4 million this year and $8 million to $10 million annually going forward.

With this production transition, virtually all of the Kulim production associates previously assigned to the TetraSun line will move to the Series 5 assembly line, which will be in full operational mode by early 2017.