US Authorities Detain Solar Modules Imported from Mexico – pv magazine International

September 5, 2024 Emiliano Bellini

Maxeon, a Singapore-based maker of solar modules, said in its second-quarter earnings report that U.S. Customs and Border Protection has for the first time detained solar panels imported from its module factories in Ensenada and Mexicali, Mexico. The company said U.S. authorities are trying to determine whether the panels are UFLPA compliant.

“These arrests concerned both Performance line panels manufactured by our company, Mexican factory for industrial-scale customers, as well as panels (with interleaved rear contacts) manufactured in our company To live in “factories for DG customers,” the company said. “(The customs agency) explained that these are routine detentions unrelated to any issues with Maxeon.”

The company said it is fully cooperating with the agency’s information requests, maintaining regular contact with authorities to facilitate the investigation and respond to their inquiries. The company also said it is not certain when the panels will be released or when it will resume importing panels into the United States.

“Maxeon has long been an ESG leader in the solar industry and has been an early supporter of the UFLPA. Maxeon continues to require a UFLPA-compliant supply chain for its products imported into the U.S., including polysilicon manufactured outside China for which we pay a significant premium compared to polysilicon produced in “China,” the producer said“Based on our internal and external reviews, we believe our supply chains are compliant with all relevant rules and regulations, as well as leading ESG standards, but we do not have visibility into the (border agency’s) process or timeline and are therefore uncertain as to when we will be able to resume deliveries to our largest target market.”

In May, Chinese wafer maker TCL Zhonghuan revealed plans to become a majority stakeholder in Maxeon. The Chinese company said it would complete the deal through a series of financing transactions, including the issuance of convertible bonds and additional shares through a private placement.

TCL Zhonghuan said it intends to pay $197.5 million for the acquisition, which would increase its stake in Maxeon from 22.39% to a controlling stake of at least 50.1%. If the transaction is completed, Maxeon would become a subsidiary controlled by TCL Zhonghuan, and its results would be consolidated in the Chinese company’s financial statements.

“The series of major investments we announced yesterday in collaboration with our strategic partner, TZE, will strengthen our balance sheet, and this recapitalization puts Maxeon in a solid financial position and reinforces our role as a leading participant in the renewable energy market,” a Maxeon spokesperson said. pv magazine then.

The company said in its second-quarter financial report that it faces significant challenges, mainly due to external market factors and political issues. In the second quarter, it reported $184 million in revenue and shipped 526 MW of panels.

“GAAP operating expenses for the quarter were $62 million and it includes a provision for expected credit losses 11 million dollars as a result of SunPower Corp.’s recent bankruptcy filing, largely related to unsecured damages from ongoing litigation and warranty claims inherited from the 2020 spin-off,” the release said.

Given the current challenges, Maxeon did not provide guidance for the third quarter and withdrew its full-year 2024 guidance.

“Due to these uncertainties, as well as the gradual closing of the recapitalization and related note conversion transactions, we will not be conducting a conference call to discuss second-quarter results,” it said. “We intend to resume quarterly earnings conference calls once business stabilizes and we can provide more meaningful insights on current business metrics and future expectations.”

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