Evergreen Solar, Inc. (Nasdaq: ESLR), a leading solar manufacturer, announced it is joining with Germany’s Q-Cells AG to develop a 30-megawatt solar wafer, cell and module manufacturing plant in Thalheim, Germany, about 100 miles from Berlin.
Construction of the facility is expected to begin in early 2005 and take approximately 12 months to complete, at a total capital cost of $75 million. Evergreen Solar will own 75.1% of the joint venture; Q-Cells will own 24.9%.
"This joint venture represents an ideal execution of the commercialization strategy we have laid out during the past year," said Richard M. Feldt, President and Chief Executive Officer of Evergreen Solar. "We are gaining a superb partner, the world’s largest independent manufacturer of high-performance solar cells and one of the fastest growing companies in Europe. Because Q-Cells is focused exclusively on cell production, we believe we can marry our technologies in ways that will enable the joint venture to optimally meet the needs of the solar power market. The agreement significantly reduces our capital requirements and accelerates the timetable for the next stage of commercializing our technology. This is a powerful strategic relationship for Evergreen Solar and an important validation of our String Ribbon technology."
Anton Milner, CEO and a Founder of Q-Cells, said, "Uniting our two technologies has the potential to dramatically reduce silicon requirements while incorporating highly efficient cell technology into the final product. We believe the proposed facility in Thalheim will establish an ideal prototype for future joint ventures with Evergreen Solar."
Given that the facility is expected to add 350 to 400 new
solar jobs, the joint venture intends to seek support from the German government in funding the project. Adjusting for any investment support grant, Evergreen Solar and Q-Cells will share the remaining construction costs on a pro rata basis. The proposed facility is expected to be constructed on property near Q-Cells’ existing solar cell factories, and should therefore capture strong synergies with Q-Cells’ operations. The joint venture will be governed by a three-member advisory board consisting of two Evergreen Solar representatives and one Q-Cells representative.
Evergreen Solar also announced it plans to offer shares of its common stock in a follow-on public offering of common stock, with expected gross proceeds of $60 million, pursuant to its universal shelf registration statement. The Company expects to grant an option to the underwriters to purchase up to an additional 15% of the shares offered solely to cover over-allotments. All of the shares are being sold by Evergreen Solar.
www.q-cells.com
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