First Solar, Inc. (Nasdaq: FSLR) announced its intent to expand its German manufacturing plant in Frankfurt an der Oder, doubling local production capacity and creating several hundred new solar jobs.
The company said it is in advanced talks with the German regional and federal authorities to obtain the necessary regulatory permits and financial framework for the expansion.
The expansion would be the first major foreign direct investment in the German green technology sector this year. It would double the annual capacity of the Frankfurt (Oder) manufacturing plant to around 446 megawatts (MW) by 4Q11 from 223 MW today to serve the strong European customer base.
The expansion also helps the company increase its natural income hedge against euro/dollar exchange rate risk by producing more in Germany for European customer demand.
First Solar employs more than 4,700 people worldwide. With an expected annual production capacity in excess of 1.3 gigawatts (GW) in Germany, the United States and Malaysia in 2010, First Solar is one of the world’s largest producers of photovoltaic modules. The company has three additional factories in different phases of construction in France and Malaysia.
When the announced factories are fully completed in 1Q12, the company will have more than 2.1 GW of capacity, based on the annualized run rate for 1Q10.
The Frankfurt (Oder) factory was recently honored as the only industrial company in eastern Germany to receive recognition by the Great Place to Work Institute. The site includes a recycling facility as part of First Solar’s commitment to resource efficiency and sustainability.
The announcement follows an admission by First Solar’s top European executive that the company will be unable to meet the high level of demand for solar modules in 2010.
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