Maxeon to Focus Exclusively on U.S. Market,
Executes Term Sheets with TCL Group to Address Rest-of-World
Markets
SINGAPORE ,
Nov. 26,
2024 /PRNewswire/ -- Maxeon Solar Technologies
(NASDAQ: MAXN) today announced a broad strategic restructuring of
the Company's business portfolio and geographic market focus. Going
forward, the Company intends to focus exclusively on the U.S.
market where its market presence and planned local manufacturing
footprint create a strong platform to drive growth and
profitability. As a key part of this strategy, Maxeon has executed
a five-year lease of an existing building in Albuquerque, New Mexico and plans to begin
solar panel manufacturing in this 2 GW capacity facility in early
2026.
In rest-of-world markets, Maxeon and TCL Technology Group, the
parent company of its majority shareholder ("TCL Group") have
reached agreement-in-principle for the sale of Maxeon's EMEA,
APAC and LATAM sales and marketing organization to TCL
Group which will be incorporated into a newly formed solar
solutions business unit, TCL SunPower International ("TCL
SunPower"). The two companies have also agreed in principle
for TCL Group to acquire Maxeon's Philippines manufacturing operations. These
transactions are intended to create a strong, new global solar
solutions company under TCL Group, while empowering Maxeon to
capitalize on its innovation-driven, U.S. focused business
platform. Maxeon and TCL Group anticipate signing definitive
agreements by the end of 2024. Following the completion of these
transactions, Maxeon will continue to operate as an independent,
publicly traded NASDAQ listed company solely focused on the U.S.
residential, commercial, and utility-scale markets.
"As Maxeon intensifies its focus on the U.S. market, our
priority is to further expand our growing residential and
commercial partner network and support our well-established base of
utility-scale customers," said George
Guo, Maxeon's CEO. "This strategic re-focusing of our
business is designed to keep us closer and more attuned to the
needs of our U.S. customer base, allowing us to leverage Maxeon's
deep experience and top-tier reputation for product innovation and
quality that are a result of almost 40 years of technology
leadership and investments in intellectual property."
Added Guo, "A core element of our U.S. strategy is to
participate in the creation of a domestic solar panel supply chain,
and we are pleased to announce that we recently executed a
five-year lease on an existing building in Albuquerque, New Mexico as the first stage in
our U.S. solar manufacturing plans. Assuming successful financing,
this site will allow Maxeon to rapidly deploy a 2 GW module
assembly facility while we continue to evaluate our longer-term
objective of also establishing solar-cell manufacturing capacity.
We are excited to move forward on our manufacturing platform in
Albuquerque and we are very
grateful to New Mexico Governor
Michelle Lujan Grisham, Senator
Martin Heinrich and the New Mexico congressional delegation,
Albuquerque Mayor Tim Keller and many others for their partnership
and support in this effort."
"Outside of the U.S., TCL SunPower plans to provide innovative,
sustainable solar solutions for both homeowners and businesses,"
said Kevin Wang, TCL Group
President, and COO. "These would include SunPower branded solar
solutions sold via the existing SunPower branded exclusive
installation partners, as well as TCL Solar products sold through
distribution channels."
About Maxeon Solar Technologies
Maxeon Solar Technologies (NASDAQ: MAXN) is Powering Positive
Change™. Headquartered in Singapore, Maxeon leverages nearly 40 years of
solar energy leadership and over 1,900 patents to design innovative
and sustainably made solar panels and energy solutions for
residential, commercial, and power plant customers. For more
information about how Maxeon is Powering Positive Change™ visit us
at www.maxeon.com, on LinkedIn and on Twitter/X
@maxeonsolar.
About TCL Technology Group
TCL Technology Group is a
diversified global technology leader in display and solar-grade
green silicon materials, TCL is also a renowned worldwide brand in
consumer electronics and smart sustainable homes. Pioneering
technology innovations more than 40 years, TCL is deeply
committed in delivering superior value, premium quality, and
ultimate satisfaction to its customers, while caring for and
making a positive impact on the communities it serves in more
than 160 markets around the world.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including, statements regarding our strategic plans, including
expected ramp and production timelines for the Company's
manufacturing facility in the U.S.; our expectations and plans for
short- and long-term strategy, including our product and technology
focus and projected growth and profitability; our ability to
execute on our plans and strategy; ad and our relationship with our
existing customers, suppliers and partners, and our ability to
achieve and maintain them.
Additional forward-looking statements can be identified by
terminology such as "may," "might," "could," "will," "aims,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. These forward-looking
statements are based on our current assumptions, expectations and
beliefs and involve substantial risks and uncertainties that may
cause results, performance, or achievement to materially differ
from those expressed or implied by these forward-looking
statements. These statements are not guarantees of future
performance and are subject to a number of risks. The reader should
not place undue reliance on these forward-looking statements, as
there can be no assurances that the plans, initiatives, or
expectations upon which they are based will occur. Factors that
could cause or contribute to such differences include, but are not
limited to: (1) challenges in executing transactions key to our
strategic plans, including executing restructuring plans,
regulatory and other challenges that may arise; (2) our liquidity,
substantial indebtedness, terms and conditions upon which our
indebtedness is incurred, and ability to obtain additional
financing for our projects, customers and operations; (3) our
ability to manage supply chain shortages and/or excess inventory
and cost increases and operating expenses; (4) potential
disruptions to our operations and supply chain that may result from
damage or destruction of facilities operated by our suppliers,
difficulties in hiring or retaining key personnel, epidemics,
natural disasters, including impacts of the war in Ukraine; (5) our ability to manage our key
customers and suppliers; (6) the success of our ongoing research
and development efforts and our ability to commercialize new
products and services, including products and services developed
through strategic partnerships; (7) competition in the solar and
general energy industry and downward pressure on selling prices and
wholesale energy pricing, including impacts of inflation, economic
recession and foreign exchange rates upon customer demand; (8)
changes in regulation and public policy, including the imposition
and applicability of tariffs; (9) our ability to comply with
various tax holiday requirements as well as regulatory changes or
findings affecting the availability of economic incentives
promoting use of solar energy and availability of tax incentives or
imposition of tax duties; (10) fluctuations in our operating
results and in the foreign currencies in which we operate; (11)
appropriately sizing, or delays in expanding our manufacturing
capacity and containing manufacturing and logistics difficulties
that could arise; (12) unanticipated impact to customer demand and
sales schedules due, among other factors, to the war in
Ukraine, economic recession and
environmental disasters; (13) challenges managing our acquisitions,
joint ventures and partnerships, including our ability to
successfully manage acquired assets and supplier relationships;
(14) reaction by securities or industry analysts to our annual
and/or quarterly guidance, in combination with our results of
operations or other factors, and/ or third party reports or
publications, whether accurate or not, which may cause such
securities or industry analysts to cease publishing research or
reports about us, or adversely change their recommendations
regarding our ordinary shares, which may negatively impact the
market price of our ordinary shares and volume of our stock
trading; (15) reaction by investors to our annual and/or quarterly
guidance, in combination with our results of operations or other
factors, and/ or third party reports or publications, whether
accurate or not, which may negatively impact the market price of
our ordinary shares and volume of our stock trading; and (16)
unpredictable outcomes resulting from our litigation activities or
other disputes. A detailed discussion of these factors and other
risks that affect our business is included in filings we make with
the Securities and Exchange Commission ("SEC") from time to time,
including our most recent report on Form 20-F, particularly under
the heading "Risk Factors". Copies of these filings are available
online from the SEC at www.sec.gov, or on the SEC Filings section
of our Investor Relations website at
https://corp.maxeon.com/investor-relations. All forward-looking
statements in this press release are based on information currently
available to us, and we assume no obligation to update these
forward-looking statements in light of new information or future
events.
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SOURCE Maxeon Solar Technologies, Ltd.