Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER) announced that its subsidiary United Solar Ovonic has entered into a joint venture with Tianjin Jinneng Investment Company (TJIC) to establish a 30-megawatt (MW) photovoltaic (PV) module assembly facility in Tianjin, the People’s Republic of China.
The joint venture, to be owned 75% by United Solar Ovonic and 25% by TJIC, will assemble solar modules using solar cells supplied by United Solar Ovonic’s Michigan-based PV cell manufacturing facilities and is expected to begin operation in 2008. The joint venture will have nonexclusive rights to sell PV modules and systems in China. Sales outside China will be through United Solar Ovonic. The joint venture will also have certain rights to sell small products up to 32 watts outside of China.
The parties anticipate that the module assembly equipment will be installed in mid-2008. United Solar Ovonic and ECD Ovonics personnel will supervise the installation of equipment and provide assistance and training during the startup phase of the joint venture.
The agreement is subject to the approval of Chinese authorities.
Said Commerce Secretary Gutierrez, "This unique alliance will encourage export of solar cells manufactured in the U.S. creating solar jobs for American workers, and is a tangible result from our trade mission last November."
In a joint statement, James R. Metzger, Executive Vice President and Chief Operating Officer of ECD Ovonics, and Subhendu Guha, President and Chief Operating Officer of United Solar Ovonic, said, "The significance of this joint venture to us is two-fold. First, it provides us with a vehicle to access the rapidly expanding Chinese market, and second, it accelerates our cost-reduction initiatives through the establishment of assembly facilities in China, tapping the highly skilled and low-cost labor. We have been active in China for several years and are pleased to expand our activities and establish our first solar module assembly facility in China with TJIC, which has extensive knowledge and operating experience in the business environment in the Chinese market."
United Solar Ovonic currently has 58MW of annual production capacity, which includes the new 30MW per annum Auburn Hills 2 manufacturing facility the company placed in service in December 2006. United Solar Ovonic is also constructing two 60MW per annum PV cell manufacturing facilities in Greenville, Mich., which are expected to begin operation in late 2007 and mid- 2008. The company’s expansion plan will increase United Solar Ovonic’s manufacturing capacity to 118MW, 178MW and over 300MW per annum by the end of calendar years 2007, 2008 and 2010, respectively.
About United Solar Ovonic
United Solar Ovonic, building on technology invented and pioneered by ECD Ovonics, is the world leader in thin-film amorphous photovoltaics. Because of characteristics unique to the United Solar Ovonic solar cell technology, such as lightweight, ruggedness and flexibility, it is ideal as building-integrated photovoltaic roofing systems for residential and industrial customers. ECD Ovonics holds the basic patents covering the continuous roll-to-roll manufacturing of thin-film amorphous-silicon alloy multi-junction solar cells and related products. More information is available at www.uni-solar.com.
About Tianjin Jinneng Investment Company
Tianjin Jinneng Investment Company (TJIC) is engaged in the investment and business management for power, thermal energy and renewable energy. It has grown significantly in the last 10 years with its assets exceeding RMB 23.5 billion Yuans and has been a China Fortune 500 company for the last three years. With its focus on the energy sector, Tianjin has 5.6 gigawatts of installed capacity catering to 83% of the electrical needs for the City of Tianjin, the third largest city in China after Beijing and Shanghai. It has been recognized as one of "the 100 super enterprises of Tianjin" from 2003 to 2006.
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