FSLR - First Solar slides after audit finds forced labor in Malaysian factory

2023-08-15 16:27:39 ET

First Solar ( NASDAQ: FSLR ) -5.5% in Tuesday's trading after saying an independent review found subcontractors used unethical recruitment tactics and withheld pay from workers at its operations in Malaysia which employed foreign migrant workers.

First Solar ( FSLR ) said the audit, which was included in a corporate sustainability report , found that four subcontractors in Malaysia had engaged in the practices.

U.S. officials and human rights activists have become increasingly concerned about the use of forced labor in the manufacture of solar panels, which occurs mostly in Asia.

The company said it is requiring the four subcontractors to change how they treat workers and agree to periodic reviews by First Solar ( FSLR ) to ensure they are no longer using forced labor.

First Solar ( FSLR ) makes a solar panel that does not use polysilicon and thus appeared immune from the supply chain concerns related to China's Xinjiang region, where the U.S. government and the United Nations accuse the government of committing human rights violations, including forced labor.

More on First Solar:

• Financial and valuation comparison to sector peers
• Analysis: First Solar: Solid Q2 Results Keep Us Bullish
• Stock price return: Up 40.5% YTD, up 76.5% in the past 12 months

For further details see: