Module maker Maxeon says U.S. Customs and Border Protection officers have halted all imports of its panels from Mexico since July whereas the federal regulation enforcement company investigates their compliance with the Uyghur Forced Labor Prevention Act (UFLPA).
Maxeon, a Singapore-based PV module producer, mentioned in its second-quarter earnings report that US Customs and Border Protection has restricted photo voltaic panels imported from module factories in Ensenada and Mexicali, Mexico, for the primary time. The firm defined that US authorities try to find out whether or not the panels adjust to the UFLPA.
“These detentions contain two Performance line panels made by us Mexicali factories for utility-scale prospects, as effectively [interdigitated back contact] panels made by our Ensenada manufacturing unit for DG prospects,” the corporate mentioned. “[The customs agency] defined that these have been routine detentions unrelated to any Maxeon-specific issues. “
The firm mentioned it absolutely cooperated with the company’s data requests, sustaining steady contact with the authorities to facilitate the investigation and reply their questions. It additionally mentioned it was unsure when the panels could be launched or when panel imports would resume within the United States.
“Maxeon has lengthy been a frontrunner in ESG within the photo voltaic trade and has been a supporter of the UFLPA since its inception. Maxeon continues to require a UFLPA-compliant provide chain for merchandise imported into the US, together with the polysilicon produced exterior of China for which we pay a big premium in comparison with internally produced polysilicon China,” mentioned the producer. “Based on our inside and third-party evaluations, we consider that our provide chains adjust to all related guidelines and laws, in addition to main ESG requirements, however nothing seems to [the border agency’s] course of or timing, and subsequently it’s unsure when we can resume deliveries to our largest finish markets. “
In May, Chinese wafer maker TCL Zhonghuan revealed a plan to turn into a majority shareholder in Maxeon. The Chinese firm mentioned it’ll shut the deal by way of a number of monetary transactions, together with the issuance of convertible bonds and extra shares by way of personal placement.
TCL Zhonghuan mentioned it goals to make use of as much as $197.5 million for the acquisition, which can enhance its shareholding in Maxeon from 22.39% to a controlling stake of no less than 50.1%. Once the transaction is accomplished, Maxeon will turn into a subsidiary managed by TCL Zhonghuan, and its outcomes will probably be consolidated into the corporate’s monetary statements in China.
“The collection of main investments we introduced yesterday with our strategic companion, TZE, will strengthen our stability sheet, and this recapitalization places Maxeon in a robust monetary place and strengthens in our position as a number one participant within the renewable power market,” a Maxeon spokesperson mentioned pv journal at the moment.
The firm mentioned in its second quarter monetary report that it faces important challenges, primarily resulting from exterior market elements and coverage points. During the second quarter, it recorded $184 million in income and shipped 526 MW of panels.
“GAAP working bills for this quarter stood at $62 million and features a provision for anticipated credit score losses $11 million ensuing from the current chapter of SunPower Corp., which is basically associated to unsecured funds for ongoing litigation and guarantee claims inherited from the spinoff in 2020,” it mentioned.
Due to the present challenges, Maxeon didn’t present steering for the third quarter and withdrew its full-year 2024 forecast.
“Due to those uncertainties in addition to the continuing closing of transactions associated to the recapitalization and associated notice amendments, we is not going to maintain a convention name to debate the outcomes of second quarter,” it mentioned. “We intend to renew quarterly earnings convention calls as soon as the enterprise has stabilized, and we will present extra significant insights into present enterprise metrics and future expectations.”
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