sunways AG

EANS-News: Extensive restructuring and realignment of the Sunways Group

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
Subtitle: - Reduction of standard solar cell production capacities and increased
focus on specialist solar cells (BIPV, automotive)
- Adjustment of business model in the area of solar modules and inverters
- Consistent utilization of synergies with LDK Solar

Company Information/Layoffs & Downsizing/Restructuring & Recapitalisations

Konstanz (euro adhoc) - 14 December 2012 - The market environment for the German
solar manufacturing industry changed drastically in the past few years. Market
prices for photovoltaic components decline continuously. Against this background
and in view of Sunways AG's (SWW:GR, SWWG.DE, ISIN DE0007332207) difficult
economic situation, the Management Board, with the consent of the Supervisory
Board, passed a resolution on the Group's extensive restructuring and
realignment. The business model with respect to solar modules and inverters will
be adapted. Standard solar cell production capacities at Sunways Production GmbH
will be reduced, simultaneously activities will concentrate on specialist solar
cells for the automotive sector and building-integrated photovoltaics (BIPV).
The utilization of synergies with the LDK Solar Group, the company's majority
shareholder, will be consistently expanded. The envisaged changes will
inevitably involve staff reductions across all functional areas and locations of
the Group. The resulting total cost reductions will have a positive effect on
the earnings development of Sunways and thus support the company's funding

"The business model of Sunways will be supplemented by 'increased services -
reduced production activities' and 'intensified application development -
reduced basic research'. Thus the Sunways brand will continue to stand for
leading technology and innovation and our position as a provider of innovative
products and customer-oriented solutions will be secured", says Michael Wilhelm,
Chairman of the Management Board of photovoltaics specialist Sunways, in view of
the company's announced realignment and restructuring. "We will continue to
strengthen our distribution activities and intensify our international sales
efforts. The initiated close consultation with LDK Solar will enable us to push
forward the necessary market entries for the Sunways brand. In addition, the
expanded business model will give us the chance to develop new customer segments
and cooperation opportunities".

Numerous manufacturers worldwide are currently subject to economic strains and
do not generate profits. The market prices for solar products and thus the net
earnings margins generated by companies declined drastically in the past two
years - e.g. the prices for solar modules dropped by more than 50 percent, the
prices for solar cells by up to 60 percent. On the market side, this was mainly
due to global excess capacities but also to uncertain political framework
conditions with respect to renewable energies that are changing at ever
decreasing intervals in many countries. 

The Sunways Group's economic situation increasingly deteriorated in the past
quarters. Due to continuous losses, the reported equity capital was reduced
drastically. In view of continuously declining prices, which cannot be offset on
the cost of materials side, the current situation is not expected to improve in
the short term. "We need to make money again", Michael Wilhelm summarizes the
situation. "Our employees are aware of this and everybody knows that there is a
long and hard road ahead of us. But I also know that our management, employees
and works councils are convinced that we will jointly lead Sunways back to the
road to success."

In the context of a capital increase, the LDK Solar Group acquired a stake in
Sunways AG as a strategic investor at the end of last year. "We have a majority
shareholder that clearly supports Sunways and has proved this again and again
over the past months", emphasizes Michael Wilhelm. This important commitment as
well as the active cooperation in the distribution area and assistance with
respect to the initiation of potential other strategic partnerships are of
fundamental importance to the successful restructuring of Sunways.

The Management Board's resolution on an extensive realignment of the Sunways
Group comprises the following elements: 

Until further notice, no solar cells for standard modules are to be produced at
Sunways Production GmbH in Arnstadt; production activities will be limited to
solar cells for specialist applications, such as e.g. building-integrated
photovoltaics. The corresponding reduction of production capacities will involve
an adjustment of the number of staff, also in supporting functions. At the same
time, Sunways Production GmbH is to take on the function of production and
service center for Sunways solar inverters and of service provider for solar
modules. The Arnstadt workforce of currently 120 is expected to be reduced by
about 50 percent.

In the inverter production segment, Sunways will in the future focus on market
and customer specific product adaptations ("customizing); the in-house
development and production of devices will become less important while the
development of holistic solutions (energy storage, energy management) will
continue. Furthermore, the cooperation of the Sunways Group's corporate and
distribution divisions with its partner LDK Solar is to be intensified in the
future, thus creating additional synergies for both sides. In this context and
to accommodate the current environment, the Management Board decided to also
reduce the number of staff at Sunways AG. 

From today's point of view, the total number of jobs within the Sunways Group of
265 may be reduced by about 40 percent. In view of the envisaged measures, the
Management Board will immediately enter into talks with the works councils at
the Konstanz and Arnstadt plants.

This press release and pictures are available on and

Forward-looking statements
This press release contains statements relating to the future business
development of Sunways AG that are based on management assumptions and estimates
made at the time of publication. Should the assumptions underlying the prognoses
fail to be fulfilled, actual events may vary substantially from forward-looking
statements. Uncertainties include changes in the political, legal, economic and
business environment, exchange and interest rate fluctuations as well as the
behaviour of competitors and other market participants. Sunways does not intend
and is not under any obligation to update forward-looking statements on an
ongoing basis as these are exclusively based on the circumstances prevailing as
of the date of publication.

About Sunways
Sunways AG, Konstanz/Germany, stands for consistent use of solar energy to
secure long-term energy supply of man in an efficient and sustainable manner.
Sunways offers technological competence, performance and highest quality - from
single components to complete solar systems.
Since its foundation in 1993, Sunways AG evolved into a technology leader in the
photovoltaics industry serving international markets. With silicon-based solar
cells, inverters, solar modules and solar systems, the company offers all
components required for high-yield photovoltaic power generation. With
photovoltaic solutions tailored to customers' needs (transparent and coloured
solar cells, building- integrated photovoltaic installations), Sunways turns
exceptional ideas into reality.
Sunways Production GmbH in Arnstadt/Germany is a subsidiary of Sunways AG; in
addition, the group has own branch offices in Barcelone/Spain and Bologna/Italy.
In 2011, Sunways AG with about 330 employees realised sales of around EUR 115
The shares of Sunways AG are listed at the Frankfurt Stock Exchange (SWW:GR,
SWWG.DE, ISIN DE0007332207). LDK Solar Group, one of the ten largest
photovoltaics companies in the world in terms of sales revenues, holds a
majority stake in Sunways since 2012.
For further information, please visit

About LDK Solar
LDK Solar Co., Ltd. (NYSE: LDK) is a leading vertically integrated manufacturer
of photovoltaic products. LDK Solar manufactures e.g. polysilicon, mono and
multicrystalline wafers, solar cells, and solar modules. LDK Solar's
headquarters and principal manufacturing facilities are located in Hi-Tech
Industrial Park, Xinyu City, Jiangxi Province in the People's Republic of China.
For more information about LDK Solar and its products, please visit

Further inquiry note:
Dr. Harald F. Schäfer
Head Corporate Communications and Investor Relations
Tel.: +49 (0)7531 996 77-415

end of announcement                               euro adhoc 

company:     Sunways AG
             Macairestr.  3 - 5
             D-78467 Konstanz
phone:       +49 (0)7531 99677 0
FAX:         +49 (0)7531 99677 10
sector:      Alternative energy
ISIN:        DE0007332207
indexes:     CDAX, Technology All Share, General All Share
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing/general standard: Frankfurt 
language:   English

Weitere Meldungen: sunways AG

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