SunEdison (NYSE:SUNE) shareholders are likely to be in a gloomy mood when the market opens after the solar power outfit announced restructuring plans.
Shares were off more than 9% in pre-market trading as the company announced it would close a polysilicon production facility in Pasadena, sell off a silicon wafer factory in Malaysia and change the focus at its Portland facility to concentrate on research and development (R&D).
The emphasis on R&D is part of an “asset light” strategy as the company struggles to adapt to harder times in the renewable energy sector.
The company will refocus its solar materials operations on proprietary silicon production technologies via partnerships and joint ventures designed to enhance profitability.
"We are moving forward on several fronts with our asset-light strategy for the upstream solar materials business," said Ahmad Chatila, SunEdison's chief executive officer.
"We believe our actions to re-engineer this business will maximize the value of our world-leading silicon production technologies, enabling SunEdison's long term downstream growth and curtailing headwinds caused by trade actions and the commoditization of certain products," he added.
The actions will result in the company taking one-off non-cash impairment charges of $266mln plus a total of $171mln in restructuring charges in the fourth quarter of fiscal 2015.