UPDATE 1-Energy Conversion Devices cuts 4th-qtr production

*Sets production furloughs for three manufacturing plants

*Will save $6 million in current quarter

*Stock down 18 percent

LOS ANGELES, May 7 (Reuters) - Solar power company Energy Conversion Devices Inc (ENER.O: Quote, Profile, Research) said on Thursday it had begun a temporary production furlough to bring supplies in line with demand and save $6 million in the fiscal fourth quarter.

The company, which makes lightweight, flexible solar laminates for rooftops and buildings, has been hit by a dearth of funding for solar projects due to the global credit crunch.

In March, the company slashed its third-quarter revenue view, withdrew its 2009 outlook and said it would slow expansion plans due to weakened demand for solar power in the United States.

The company said the furlough has already begun at its Tijuana, Mexico, production facility. That shutdown will continue for the first two weeks of May and also the first two weeks of June.

Energy Conversion Devices will also suspend production at its Auburn Hills and Greenville, Michigan, sites on May 17. Production will resume in Auburn Hills on June 7 and in Greenville on June 14.

Shares of the Rochester Hills, Michigan, company were down $3.68, or 18.5 percent, at $16.20 in early afternoon trading on the Nasdaq. (Reporting by Nichola Groom; editing by Gunna Dickson)