SunEdison slumps on restructuring news

The company is pursuing an asset light strategy, involving partnerships and joint ventures

China-based LONGi Silicon Materials is buying the Malaysian factory

SunEdison (NYSE:SUNE) shareholders are likely to be in a gloomy mood when the market opens after the solar power outfit announced restructuring plans.

Shares were off more than 9% in pre-market trading as the company announced it would close a polysilicon production facility in Pasadena, sell off a silicon wafer factory in Malaysia and change the focus at its Portland facility to concentrate on research and development (R&D).

The emphasis on R&D is part of an “asset light” strategy as the company struggles to adapt to harder times in the renewable energy sector.

The company will refocus its solar materials operations on proprietary silicon production technologies via partnerships and joint ventures designed to enhance profitability.

"We are moving forward on several fronts with our asset-light strategy for the upstream solar materials business," said Ahmad Chatila, SunEdison's chief executive officer.

"We believe our actions to re-engineer this business will maximize the value of our world-leading silicon production technologies, enabling SunEdison's long term downstream growth and curtailing headwinds caused by trade actions and the commoditization of certain products," he added.

The actions will result in the company taking one-off non-cash impairment charges of $266mln plus a total of $171mln in restructuring charges in the fourth quarter of fiscal 2015.

Quick facts: SunEdison

Price: - -

Market: NYSE
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Emperor Energy moving forward with APA Group to deliver gas into the homes...

Emperor Energy Ltd's (ASX:EMP) Carl Dumbrell updates Proactive's Andrew Scott on the plans for its Judith Gas Field in the offshore Gippsland Basin, Victoria. The company's working with APA Group (ASX:APA) on a pre-feasibility study which Dumbrell says will open up access to their processing...

1 hour, 4 minutes ago

2 min read