Thin-film solar PV manufacturer Midsummer has announced plans to cut down around 50 full-time jobs in Sweden as part of an 'efficiency' program. It says the move is aimed at securing resources for the company's upcoming Italian operations.
Midsummer's Bari located fab in Italy with 50 MW annual installed capacity is scheduled to come online in 2024 with around 25 MW initial production and an annual rate of 50 MW by the end of next year.
The company expects Italian National Agency for Inward Investment and Economic Development (Invitalia) to take the decision on the next payment of close to SEK 100 million in investment support by Q1/2024 or Q2/2024 after Midsummer rolls out initial modules in Q4/2023.
Invitalia had announced SEK 390 million ($45 million) financial support for the Bari fab in 2021 (see Midsummer Gets Italian Support For Solar Fab).
"We are soon opening Europe's largest factory for the manufacture of thin film solar cells in Bari, Italy and must secure resources for this, as well as focus production there in the long term," explained CEO and Founder Sven Lindström. "Unfortunately, this entails some reductions in Sweden. The goal to start operations in Italy as soon as possible in order to partly be able to start selling large volumes of panels from this factory to customers who are waiting for them, partly to be able to trigger part two of the investment support we have agreed on with the Italian authorities."
The 'efficiency' program, an expansion of the one launched last summer, is targeted to cut costs across the board including the choice of materials, and review of product and service suppliers.
Midsummer management expects to save over SEK 40 million ($3.64 million) annually after spending close to SEK 3 million on restructuring costs in Q4/2023. The effect of the program will become visible in early 2024.
It has also decided to launch a new subsidiary to manage sales, installation and marketing work for a more efficient sales work and a 'clear business and profitability focus'.
In the midst of these plans, company CEO Lindström plans to relinquish his position as the CEO of the company after 20 years in this role saying he will continue to have a leading position as technology and business development manager for Midsummer. Lindström will remain the CEO till a replacement is appointed.
He said, "I have been CEO for 20 years and contributed to building Midsummer into a leading global player in thin-film solar cells with a completely unique technology, but when we now need to focus more on commercial development, internationalization and customer focus, I think I can contribute better in another more technical role."
Meanwhile, the management said the company has started working towards securing the necessary counter-financing to the €32 million ($34 million) it won from the EU Innovation Fund for a new 200 MW factory it plans to set up in Sweden (see New Thin Film Module Factory Planned In Europe).
Midsummer's cost-cutting plans follow its fellow winner of the EU Innovation Fund round, NorSun, shutting down its Norwegian plant temporarily and laying off employees (see European Solar Wafer Manufacturer In Trouble).
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