| HooverDam |
Nov 16, 2009 7:20 AM |
http://www.azcentral.com/business/ar...solar1116.html
Quote:
Solar-panel maker plans HQ in Valley
by Ryan Randazzo - Nov. 15, 2009 09:36 PM
The Arizona Republic
Chinese solar-panel manufacturer Suntech Power Holdings Co. announced Sunday night it would locate a 100,000-square-foot North American headquarters and manufacturing facility in the Valley.
The facility should be running within a year, employing 75 people at first, 150 after a year of operations and 250 or more at full build-out.
Suntech is well-known in solar development, and is likely to take advantage of new state incentives intended to land just such investments. The incentives are part of a broader effort to diversify the state's real estate-dependent economy and attract high-paying jobs.
“This is a great day for Arizona,” Gov. Jan Brewer said. “I've been so determined that we have a business climate that will bring us jobs. We committed to Suntech we will make the transition as easy as possible for them.”
Suntech is deciding between an East Valley and West Valley location for its factory that will make panels that convert sunlight to electricity, said Barry Broome, president of the Greater Phoenix Economic Council. GPEC has been negotiating to convince Suntech to open a facility in Arizona for two years, Broome said, and the decision came down to the Valley or Austin, Texas.
“It's been a while since we won something over Texas,” he said.
Earlier this year, Brewer signed into law legislation that gives tax breaks to companies that open new manufacturing plants or headquarters buildings for renewable-energy companies, which Broome said was “pivotal” to Suntech.
The renewable-energy incentives law offers factories that make renewable-energy equipment up to a 10 percent income-tax credit on capital investment.
Companies that spend at least $25 million also could have their property taxes reclassified, saving them about 80 percent of that tax.
Brewer said Suntech plans a $13 million investment in its first phase and more down the road.
To apply for the incentives, companies must pay at least 25 percent more than the state median wage, with higher wages eligible for higher tax breaks. To be eligible, they also would have to provide health-care coverage and meet other requirements.
“We set the standard very high, and they are willing to do that,” Brewer said. “(The bill) is one of those great things that a lot of people worked on that is going to be a godsend.”
Other locations that didn't make the short list for Suntech's new facility include Nevada, New Mexico, California and sites in the South and Northeast, Broome said.
Texas offers an enterprise zone incentive for manufacturers that would have given Suntech tax relief in that state, making the decision to come to Arizona even more impressive, Broome said.
GPEC began pushing for state incentives for solar companies during the 2008 legislative session.
At that time, nine companies that make solar equipment had passed up the Valley of the Sun in the past year in favor of neighboring states.
From those nine projects alone, Arizona is missed out on more than 3,800 jobs, $2.3 billion in investment and $732 million in state and local revenues during the next decade, according to GPEC.
And in the next year it took to pass the Arizona incentives, several other international solar manufacturers moved to neighboring states.
Arizona not only offers the tax incentives, but also gives Suntech and other solar companies easy access to the booming solar-power market in California, Broome said.
Suntech officials said they plan to grow their U.S. market from the new facility.
“Bringing manufacturing jobs to the U.S. is part of Suntech's vision to grow the solar market in every corner of the world," Suntech's CEO Zhengrong Shi said in a prepared statement. “We are eagerly watching growing markets and see the potential of bringing manufacturing capabilities to other markets where we see the combination of rapid local market growth and manufacturing cost competitiveness.”
The announcement from China coincides with a visit there by President Barack Obama.
Suntech makes solar panels and designs large-scale solar-power plants in China and the United States. It has regional headquarters in China, Switzerland and San Francisco.
Broome declined to name the Phoenix-area cities competing for the Suntech facility.
He said they both are offering other incentives in addition to the state tax breaks.
He also said it would be possible for the company to be up and running within a year because Suntech is likely to take over one of the Valley's vacant semiconductor facilities, which are well-suited to handle solar-panel manufacturing.
“Stay tuned,” Brewer said. “This is just the beginning, I hope.”
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Welp thats good news. Anyone wanna take bets on what city they end up on? Id bet Chandler. Its really disgusting how far behind we already are in Solar. Whoever our next governor is (Id bet anything its Terry Goddard) needs to put on the full court press in this area.
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