Amtech Systems Inc., a supplier of production and automation systems and related supplies for the manufacture of solar cells and other products, plans to put into place several cost-reduction measures in order to weather the current difficult market environment.
The company expects the changes will generate annual cost savings of $6 million to $7 million in fiscal 2013, when compared to the company's annualized expense run rate in the first half of fiscal 2012.
The savings will come primarily from selling, general and administrative, and non-essential research and development costs. The cost reduction programs include voluntary salary reductions by the officers of the company ranging from 10% to 20% and salary reductions of other corporate staff.
‘When the solar headwinds became readily apparent in the middle of 2011, we took aggressive action and immediately began reducing our costs, including headcount and discretionary costs,’ says Fokko Pentinga, CEO of Amtech.
‘Due to the continuation and severity of the downturn, we are implementing even more extensive measures in the current quarter to reduce the cost structure of our corporate and solar operations, from which we expect to produce significant annual cost savings in fiscal 2013,’ Pentiga continues.