Suntech Power Holdings Co. Ltd. has introduced a five-part strategy that the company hopes will help improve its operations and financial position.
Suntech says it will invest in ‘profitable and sustainable customer relationships,’ continue to run at reduced production capacity (1.8 GW of cell capacity, 1.6 GW of wafer capacity and up to 2.4 GW of module capacity); measure cost inputs and aim to continue to reduce production costs; reduce its operating costs by 20% by ‘streamlining’ its operating structure; and extend its credit facilities.
For the last part of the plan, Suntech has brought on UBS Investment Bank to evaluate alternatives for Suntech to address its convertible notes due March 2013.
Earlier this month, Suntech received a $32 million rescue package from the government of Wuxi, China. The company has struggled financially in recent months and received a warning of possible delisting from the New York Stock Exchange in late September.