GT Advanced Technologies (GTAT) said it would undergo a major restructuring of its operations in response to poor market conditions for PV manufacturing equipment.
One of the largest equipment suppliers to the PV industry said that it would be streamlining its worldwide operations to reduce costs, which included workforce reduction of approximately 25% and would consolidate existing business units into a single Crystal Growth Systems (CGS) group.
Tom Gutierrez, president and chief executive officer, GTAT said: “It is becoming increasingly clear that some of our Asian customers are experiencing severe financial difficulties brought on by a number of economic and trade related challenges. We are not immune to these headwinds and we are taking actions to prepare for what is likely to be a challenging 2013 in our core markets by lowering our cost structure and at the same time improving our ability and flexibility to make strategic investments in R&D, next-generation technology and diversification initiatives that we believe will drive future growth and the creation of shareholder value.”
As a major supplier of crystalline ingot furnaces and associated polysilicon technologies, GTAT has been impacted by the massive overcapacity in both sectors as expansion plans were halted and profitability of customers vanished.
GTAT also said that revenue for the Q3 2012 would be at the low end of its previously stated guidance, of between US$110 million – US$140 million. The company will report Q3 results next week.
The divisional restructuring will see Dan Squiller take on the role of President of the company’s new CGS business group, reporting directly to Tom Gutierrez.
GTAT noted that David Keck would assume the role of executive vice president and general manager of the PV and polysilicon unit, while Cheryl Diuguid would remain as head of the sapphire business unit as executive vice president and general manager.
Others report to Gutierrez will include, David Gray, chief strategy officer, Vikram Singh, executive vice president of advanced systems development and R&D, and Jeff Ford, vice president and general manager of DSS business development. GTAT said that the changes were required to better focus on its next wave of growth opportunities as the company continued to invest in new technology, despite market conditions.
“Combined with our healthy balance sheet with nearly $480 million of cash and cash equivalents, the actions we announced today solidly position GT to execute on this growth strategy, laying the groundwork for us to emerge as a stronger, more diversified global technology leader,” added Gutierrez.