In response to drastic change in the global PV market, Motech Industries Inc. unveiled plan on Nov. 28 for laying off 916 workers by Jan. 28 2019.
The layoff is part of the company's initiative streamlining organization and downsizing workforce staring mid-2018, in order to cut loss and improve competitiveness in a short run.
Motech pointed out that the aforementioned initiative consists of three key reforms, namely intensifying management, utilizing assets flexibly, and deleveraging, in order to cope with the impact of China's new 531 policy. The latest move of manpower downsizing follows previous layoffs at crystal growth and slicing plant and Kunshan plant in China, as well as foreign laborers.
Motech noted that following the manpower downsizing, the Taiwanese factory will focus on production of high-performance PV cells and modules, plus PV power systems at downstream sector, highlighting niche products, rather than scale of production.
Motech reported that after the reduction of operational scale, the company has slashed inventories and accounts receivable, creating adequate cash flow in operation. As for flexible utilization of assets, the company has sold some idled factory buildings, thereby slashing debts and boosting the share of cash in assets. In the future, it will gradually shift the focus of its operation to downstream PV modules and systems, away from PV cells, and maintain an operation with light assets, capable of coping various challenges in the volatile market.
(First photo courtesy of Pixabay)
