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Layoffs? Suspension of production? The photovoltaic giant responds

published: 2024-06-05 17:38

Recently, there have been rumors that LONGi Green Energy's module factory in Malaysia will gradually shut down this week, and last week, all five production lines at LONGi's cell factory in Vietnam had also stopped working.

Previously, there were screenshots circulating online claiming that LONGi Green Energy was adjusting production and personnel at some of its domestic production bases, adopting a three-choice method: first, compensation of N+1 and resignation; second, taking 75% of the basic salary of 2150 yuan and waiting at home for notification, returning to work when the company needs; third, staying and working with a rotation schedule.

In response to this, a person related to LONGi Green Energy responded to reporters from the Shanghai Securities News on the evening of the 4th, saying that after verification, the current industry environment is complex, and the company continues to observe and judge key factors such as the global photovoltaic market and policies. At the same time, in order to widely promote the agile intelligent manufacturing model, the company continues to promote the digital upgrading and technological transformation of global base factories, so there will be adjustments to the production plan of different regional bases. During this period, LONGi Green Energy has taken various measures such as cross-base support and shift rotation to minimize the impact of production adjustments on employees and protect their legal rights according to the law. The company will adjust production according to market changes and upgrade transformation progress in a timely manner.

"Since the beginning of this year, the industry has been affected by multiple factors such as product price changes, accelerated technology iteration, and trade policy adjustments, and photovoltaic companies are facing certain operational challenges. LONGi Green Energy will continue to carry out product technology innovation and intelligent manufacturing upgrades, and firmly look forward to the long-term positive trend of the global photovoltaic industry," the person said.

He also told reporters that the rumors about production and personnel adjustments were exaggerated, "We are a company with tens of thousands of people. If it were really the case, I think there would not be only one screenshot circulating."

Public information shows that LONGi Green Energy's module factory located in Shuangwen Dan, Selangor, Malaysia, was just put into operation on October 17 last year, covering an area of 140 acres and costing 1.8 billion ringgit (approximately 2.8 billion yuan). The total capacity of both phases is 8.8GW, of which the first phase of 2.8GW is gradually put into operation. LONGi's Vietnam factory is located in Yunzhong Industrial Zone, Yue'an County, North Jiangsu Province, Vietnam. As of December 31, 2023, the 3.35GW cell project in Vietnam has been put into operation, with an estimated total investment of 757 million yuan. The project is implemented by its wholly-owned subsidiary Vietnam NWestern Solar.

LONGi Green Energy's 2023 annual report shows that the company is actively expanding its overseas capacity layout, with the 2.8GW module project in Malaysia and the 3.35GW cell project in Vietnam being put into operation on schedule, and the construction of the 6.6GW silicon rod project in Malaysia is progressing orderly.

LONGi Green Energy decided to shut down the module factories in the above areas, which may be affected by the U.S. "516 Photovoltaic New Deal". At local time on May 16, the White House announced that the duty-free policy for imported bifacial solar panels from Malaysia, Vietnam, Thailand, and Cambodia, which started in June 2022, will be terminated after it expires on June 6 this year.

Source:Shanghai Securities News

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