STR Holdings, Inc. (NYSE: STRI), a provider of solar encapsulants to the photovoltaic module industry, announced plans to expand its U.S. manufacturing capacity to 3 gigawatts (GW) and relocate the majority of its facilities to a 275,000-square-foot plant in East Windsor, CT.
The facility also will be home to U.S.-based product management and sales teams and house a new 10,000 square foot research and development laboratory.
The Company will cease manufacturing at its facilities in Enfield and Somers, CT after moving its existing equipment into the new facility during the next 15 to 18 months. The closing on the purchase of the new facility is contingent upon completion of due diligence and satisfaction of certain other customary conditions, which the Company expects to complete by the end of 3Q10.
The Company also expects to install an additional 1 GW of production equipment during 3Q11. The majority of the approximately $19 million for these expansion projects is expected to be incurred in 2010 and the early part of 2011.
The Company said that the new facility could accommodate future expansion of up to 5.5 GW of total capacity.
Dennis L. Jilot, Chairman, President and CEO of STR Holdings said the
companis taking steps to accommodate increasing demand in the solar
market over the next few years.
“This building meets our critical requirements,” said Robert S. Yorgensen, President of STR Solar. “It is very close to our existing properties, so our highly trained and valued workforce will not be disrupted by the move; it provides ample space for the growth we anticipate in the coming years, and it has an exceptional space for our new, state-of-the-art research and development laboratory, which is a key strategic imperative for maintaining our leadership in technical innovation.”
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