Wed, Nov 01, 2017 - Page 12 News List

Motech to allocate about 200 workers to new venture

By Lisa Wang  /  Staff reporter

Solar cell maker Motech Industries Inc (茂迪) yesterday said it plans to allocate about 200 employees to a new solar module manufacturing venture in an effort to wring more profit out of the volatile solar industry.

The comments followed a report by the Chinese-language Apple Daily that said the Tainan-based company planned to lay off 300 workers at a meeting today, citing a tip-off.

“The first part of the report is total speculation,” Motech said in a filing with the Taiwan Stock Exchange. “The company is creating a new solar module venture by introducing external strategic partners, with an aim to improve profitability.”

Motech is encouraging employees to move to the new company by offering compensation packages that are better than the terms stipulated by the Labor Standards Act (勞動基準法), the filing said, adding that about 200 workers would be affected by the plan.

Early last month, Motech said it signed a solar module manufacturing venture agreement with solar paste maker Gigasolar Materials Corp (碩禾) to source business opportunities in the solar industry supply chain.

In the initial phase, Motech plans to invest NT$180 million (US$5.97 million) in the new company, Taiwan Solar Module Manufacturing Co (台灣太陽能模組製造), which would entitle it to a 90 percent stake in the venture, Motech said.

Gigasolar is to own a 10 percent stake in the new firm.

The strategic alliance comes as the solar cell industry grapples with prolonged oversupply, with local solar cell makers Neo Solar Power Energy Corp (新日光能源), Gintech Energy Corp (昱晶能源) and Solartech Energy Corp (昇陽光電) on Monday unveiling a major merger plan.

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