UPDATE 2-Q-Cells to cut about 500 jobs in restructuring
(Repeats to fix transmission fault)
* Q-Cells says to review all investment projects
* Aims to reduce production costs by 25 pct
* Books further write-down for REC, H1 loss 697 mln euros
* Phoenix Solar EBIT lags expectations, confirms '09 outlook
* Q-Cells indicated down 6.6 pct, Phoenix Solar up 0.4 pct
(Adds trader's comment, Phoenix Solar, background, shares)
FRANKFURT, Aug 13 (Reuters) - Q-Cells (QCEG.DE), one of the world's biggest makers of solar cells, is planning to slash about a fifth of its workforce, it said on Thursday, in a move to counter the effects of a price war.
"Together with the necessary reduction in overheads in all areas, around 500 jobs will be cut permanently. Short-time work will continue to be in operation at the Thalheim plant depending on the market development," Q-Cells said in a statement, adding it would review all investment projects.
It now employs about 2,600 staff.
The news comes a day after Chinese rivals JA Solar Holdings Co Ltd (JASO.O) and LDK Solar Co Ltd (LDK.N) posted quarterly net losses due to a price slump that has put a sudden stop to growth in the sector. [ID:nN12177787]
Q-Cells in July withdrew its 2009 sales forecast after the price slump and high operating costs brought a 62 million-euro ($87.58 million) second-quarter operating loss. At the same time it announced outline details of the restructuring programme. [ID:nLE396437]
It expects the restructuring to cut production costs by 25 percent, necessary after Asian rivals cut prices.
In the first half of 2009 the company made a net loss of 696.9 million euros, caused by further writedowns on the sale of its stake in Norway's Renewable Energy Corp (REC.OL) in May. The writedowns were widely expected by analysts. [ID:nL664956]
