The hottest solar polysilicon giant MEMC announced

Solar polysilicon giant MEMC announced a global restructuring plan

solar polysilicon giant MEMC announced that it would take a series of measures in the fourth quarter of 2011 and the leading quarter of 2012, including global layoffs, capacity reduction and cost reduction. These measures will make the company's business better adapt to the current and future semiconductor and solar energy market environment, and are expected to improve the overall cost competitiveness of the company and increase the cash flow of each business department

memc predicts that the expenditure in the fourth quarter of 2011 will reach US $700million, of which about US $520million is non cash expenditure. The cash expenditure related to this restructuring is expected to be $180million, most of which will appear after 2012. By improving labor productivity, reducing procurement expenditures and improving the asset base, the company expects its annual cash flow to exceed $200million by the end of 2012

in addition, MEMC is also evaluating current goodwill and deferred income tax assets. The non cash expenditure caused by goodwill impairment may appear in the fourth quarter of 2011. According to the preliminary results of MEMC's annual goodwill impairment test, this expenditure is between $200million and $400million. Non cash expenses related to the realization of deferred income tax assets are expected to appear in the fourth quarter of 2011, of which graphene and manganese dioxide composites are the most studied, ranging from US $225million to US $275million

ahmad Chatila, CEO of MEMC, said: "The company believes that these measures will promote the profit growth of the company's core business - semiconductor wafer and solar energy system. The current market conditions require the company to improve the production capacity of each business department and form a more balanced manufacturing mode with the company's downstream business. The company hopes to increase its cash flow next year through these measures. In the future, the company will continue to be committed to providing advanced semiconductor and solar energy customers around the world Technology and quality service. "

restructuring plan:

restructuring measures will cover all business departments and have an impact on a large number of employees and production assets. These measures are expected to reduce the company's operating expenses by more than 15%

as part of the restructuring plan, MEMC will cut more than 1300 jobs worldwide, accounting for about 20% of the company's total employees. About 250 jobs were cut in the United States, about 41% in the semiconductor materials department and 47% in the solar materials department

the company plans to idle the 6000 metric tons of annual capacity of Italy's Merano polysilicon plant. Unless it can achieve a year-on-year decrease of 14.3pct in the short term, and the cost of raw materials, electricity and other costs are significantly reduced, the plant may be closed. The company is studying the possibility of realizing the above cost reduction with the local government and major suppliers

the company will reduce the production capacity of Portland crystalline silicon plant in Oregon and limit the production capacity of Kuching wafer plant in West Asia to 300MW, which is one of the important performance indicators of metal materials

the solar materials department and the sun Edison business department will be merged into one solar business department, effective from January 1, 2012