Sunpower shutters production plant

Photovoltaics

Sunpower will close its Fab 1 production facility in the Philippines. The California solar power company will continue to use its Fab 2 facility, also located in the Philippines. Consolidation of its Philippine activities into a single location is expected to improve the efficiency of the supply chain and lower the manufacturing cost per watt through scale advantages.

It is still unclear what Fab 1 will be used for. Workers will either be transferred to Fab 2 or have the opportunity to work for potential Fab 1 tenants. Sunpower will transfer some equipment to reduce manufacturing constraints. “The reduction of approximately 125 megawatts of nameplate capacity at Fab 1 will be partially offset by further improvement in yields and equipment efficiency in Fab 2 and Fab 3," said Tom Werner, SunPower president and CEO.

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