First Solar Inc. said Wednesday that it plans to make significant cuts to its global work force and will take steps to idle its Perrysburg Township plant this year as the company embarks on a major restructuring of its manufacturing operations.

The move is expected to lead at least initially to hundreds of layoffs, though it’s not clear what the long-term impact will be for the facility. 

The solar-panel plant is expected to have production stopped for more than a year.

UPDATED ARTICLE: First Solar announces 450 layoffs

First Solar said its restructuring plans call for cutting 1,600 jobs — about 27 percent of its global work force. A company spokesman declined to comment on the specifics of the job cuts, though it seems all but certain that many of those reductions will come from the local plant.

As of May, the Perrysburg Township plant had 1,400 employees.

Faced with what company officials described as challenging market conditions, First Solar decided to accelerate the launch of new, larger, more efficient thin-film solar panels that offer three times the wattage of its existing products.

To do that, though, the company will phase out production of its current Series 4 solar panels, which are made in Perrysburg Township. 

The company also will scrap plans for a Series 5 panel.

On a conference call with investors and industry analysts to discuss the firm’s 2017 financial guidance, Chief Executive Officer Mark Widmar said First Solar would begin the process in Ohio, which represents higher cost production.

Mr. Widmar said the new line, which will require different tooling and equipment, is expected to be operational by the second half of 2018. 

Similar changes appear to be in line for the company’s plant in Malaysia. Officials said they could even look to use a plant in Vietnam that was built but never put into production.

“While we will have an international manufacturing footprint, Ohio will continue to be our innovation hub,” Mr. Widmar said.

Though officials said the changes will provide a long-term benefit, First Solar now expects to post a loss of between $2 and $4 a share this year.

The company has forecast for 2017 its earnings will range between a loss of 10 cents a share to a profit of 45 cents a share.

In its filing with the Securities and Exchange Commission, First Solar said it expected most of the $500 million to $700 million in impairment charges related to the product changeover would occur in the period ending at the end of the year.

The company projected sales would be $2.5 billion to $2.6 billion next year, down from its projected $2.8 billion to $2.9 billion this year. Analysts, according to Thomson Reuters, had forecast $2.98 billion in sales next year.

First Solar’s announcements were made after U.S. markets closed. However, the company’s shares were trading at lower prices in after-hours trading.

First Solar was founded in Toledo in 1986 as Solar Cells Inc. by the late Harold McMaster.

In 1999, it was sold to True North Partners LLC and renamed. It is now based in Tempe, Ariz.

Contact Tyrel Linkhorn at tlinkhorn@theblade.com or 419-724-6134.

First Published November 17, 2016, 5:16 a.m.