The leading global
provider of comprehensive photovoltaic solar systems last week revealed it was
selling its factory and leaving Vietnam.
Brandon Mitchener, First Solar director of
communications, last week told VIR the company was selling its factory in Ho
Chi Minh City’s Dong Nam Industrial Park. In February 2012, the American
company completed an evaluation and approved a set of manufacturing capacity
and other initiatives primarily intended to adjust its previously planned
manufacturing capacity expansions and global manufacturing footprint.
“Due to supply-demand imbalances in the world solar
market, regrettably the First Solar plant in Dong Nam Industrial Zone will be
postponed until the market demand requires the additional capacity,” said Tymen
De Jong, senior vice president of Manufacturing for First Solar.
After deciding not to proceed with its previously announced
four-line plant in Vietnam and all necessary construction was completed in
April this year, First Solar attempted to sell the plant.
Sales agent Cushman & Wakefield is seeking buyers for
the 113,000 square metre manufacturing facility, including 107,000sqm of
industrial space divided into two production areas, a large logistics area and
6,000sqm of external office building.
The company’s quarterly report revealed in May 2012 that
the Vietnam plant was classified as “assets held for sale” in the condensed
consolidated balance sheet. According to the report, as of March 31, 2012, an
impairment charge of $92.2 million was levied for the plant. Of which, an
impairment charge in the three months ended in March 31, 2012 was $29 million.
Also, according to the report, the carrying amount of the
Vietnam plant as of March 31, 2012 was $46.2 million. “The carrying amount of
the Vietnam plant represents the fair value of the plant less expected costs to
sell,” said the report.
The quarterly report also stated: “We expect to complete
the sale of the Vietnam plant within the next 12 months, but the expected
selling price is substantially below our cost of construction and there can be
no guarantee that such sale will be completed in the next 12 months”.
First Solar has also decided to postpone the
commissioning of its previously announced four-line plant in Mesa, Arizona and
the construction of their previously announced two-line plant in France until
such time as global supply and demand dynamics support the additional
manufacturing capacity.
The primary goal of these initiatives is to better align
production capacity and geographic location of such capacity with expected
geographic market requirements and demand, the company said.
Minh Thien | vir.com.vn
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