Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER) has selected Greenville, Michigan as the site for the third solar cell plant for subsidiary United Solar Ovonics.
The plant will expand United Solar Ovonic’s module manufacturing capacity to 300 megawatts (MW) by 2010. The first phase of the expansion plan includes the construction of the Greenville manufacturing facility with an annual capacity of 50MW, which is expected to be operational in calendar year 2007. United Solar Ovonic’s existing 25MW production facility is located in Auburn Hills, Mich. In July 2005, United Solar Ovonic broke ground for a second 25MW production facility also located in Auburn Hills.
The competitive incentive package approved by the State of Michigan and the City of Greenville persuaded ECD Ovonics and United Solar Ovonic to construct their next solar plant in Michigan. The $129 million plant will provide 200 new solar jobs to Greenville. The project paves the way for the potential of five more plants and up to 1,000 additional jobs in Michigan.
"Since the day Electrolux announced its closing, we have worked fervently to bring new jobs for Greenville," Granholm said. "The city’s leadership and its outstanding workforce helped win United Solar Ovonic’s major new investment, adding another strong anchor for Michigan’s alternative energy industry."
The MEDC approved a Single Business Tax credit valued at $5.7 million over 20 years to win the company’s business. A $5 million federal Community Development Block Grant approved by the MEDC and awarded to the city of Greenville will fund needed infrastructure improvements to support the new plant. The city has proposed a tax abatement valued at approximately $3.6 million over 12 years for the project. The MEDC and city are expected to support a 15-year, tax-free Renaissance Zone for the site, worth an additional $20.4 million to the company. With additional funding for training assistance, the state and local incentive package totals approximately $37 million for the 50MW expansion.
State and local governments are also providing United Solar Ovonic with additional incentives to invest up to an additional $600 million for up to five more plants in Greenville and up to 1,000 new jobs.
ECD Ovonics and United Solar Ovonic hold the basic patents for the production process and equipment which is the world’s largest and most advanced for the manufacture of thin film amorphous silicon alloy solar cells and related products. These products are used for a variety of applications to convert sunlight into electrical energy, ranging from large solar farms for utility-scale applications to battery chargers for solar lanterns. United Solar Ovonic’s solar cells are lightweight, rugged and flexible, ideal for use in building-integrated photovoltaic roofing systems for residential and industrial customers.
A University of Michigan economic analysis estimates that increased economic activity created by the new facilities will generate an additional 363 indirect Michigan jobs, in addition to the 200 created directly by the company. The project is expected to generate more than $600 million in personal income for Michigan workers over the life of the tax credit.
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