Satson to restructure; to close in Canada

Under the plan, Satcon will focus on North America, China, India and Thailand as well as other emerging markets in the Asia-Pacific region. Satcon will also close its Canadian manufacturing facility, and is currently working to partner with a contract manufacturer to maintain Ontario production capacity for Satcon solutions to continue to satisfy Ontario’s feed-in tariff requirements. In addition, Satcon has restructured its office and warehouse infrastructure in Europe, China and the United States in order to better align with market conditions and further reduce costs. As part of the organizational restructuring, the company will reduce its workforce by 140 employees worldwide, or approximately 35%. This reduction, combined with the closure of the Canadian facility, will result in charges of approximately $2.8 million to $3.0 million. The majority of the charges are expected to occur in the fourth quarter of 2011, with the remainder taking place in the first quarter of 2012. The company expects ongoing savings of approximately $15 million to $17 million annually once all actions are implemented by the second quarter of 2012.