Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER) announced the company’s Board of Directors approved a plan to expand the solar module manufacturing capacity of its United Solar Ovonic subsidiary to 300 megawatts by 2010.
ENER announced a stock offering of 6,150,000 shares in part to finance the expansion. The company intends to use in the near term approximately $150 million of the net proceeds to expand United Solar’s third manufacturing facility with an annual capacity of 50 megawatts. The company intends to use the balance of the net proceeds from this offering for future capacity expansion of its thin-film solar cell business and for other general corporate purposes.
The first phase of the expansion plan will include the construction of a third manufacturing facility with an annual capacity of 50 megawatts, which is expected to be operational in calendar year 2007. United Solar currently manufactures solar modules at a 25-megawatt production facility in Auburn Hills, Mich., and is currently constructing a second 25-megawatt production facility there.
“Expanding our capacity should enable us to continue to strengthen our position in the rapidly growing market for solar power systems. Global demand for solar power systems is expected to grow in excess of 20% annually,” commented Robert C. Stempel, Chairman and CEO of ECD Ovonics.
“We are responding to the increase in demand we are seeing for our products. Our ability to manufacture our unique thin-film products is not affected by the shortage of polycrystalline silicon that is impacting many of our competitors,” said Stanford R. Ovshinsky, President, Chief Scientist and Technologist of ECD Ovonics. “Our previously announced capacity expansion, which is already in progress, will allow us to double our capacity in calendar year 2006 and the plan approved by the Board should allow us to double our capacity again in calendar year 2007.”
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