Solar Power, Inc. On The Move
Solar Power, Inc. has announced that it has selected McClellan Business Park as the site for its U.S. manufacturing facility, subject to finalization of building agreements. As announced on March 9th, the Company has received an initial commitment of $24.7 million in Recovery Zone Facility Bonds ("RZFB") from Sacramento County and plans to use the proceeds from the sale of these bonds to help finance renovation and outfitting of the manufacturing facility to build its high-performance solar panels. The Company engaged a leading, international middle market investment bank and institutional securities firm to assist with its efforts. A portion of the RZFB Bond proceeds, upon successful placement, will also go in part towards the development of a utility-scale photovoltaic solar system in Sacramento County that will exceed 10 megawatts and have an estimated value of $50 million.
Solar Power, Inc.'s recent announcement of plans to open a major manufacturing operation in Sacramento has garnered attention and support from the State's capitol, as well as from leading regional business development organizations. Heralding the Company's move, Governor Schwarzenegger said, "The addition of this renewable energy manufacturing facility is great news for Sacramento and the rest of the State because it will lead to more homes and businesses powered by sunshine while creating jobs in the clean-tech industry. California has led the world in enacting policies that harness the sun, combat climate change and reduce our dependency on foreign oil, and it is companies like Solar Power, Inc. that are helping us reach a more sustainable, clean energy future."
The proposed manufacturing facility at the McClellan site will be approximately 100,000 square feet with an annual production capacity of 50 megawatts of Solar Power, Inc.'s top-ranked solar panels. It is estimated that the facility will bring 120 new construction jobs to the region during the 9-month construction period and 100 full-time skilled workers and office staff to the facility upon completion. Together with Solar Power, Inc.'s current manufacturing facility in China, the McClellan facility is expected to double the Company's annual production capacity to 100 megawatts. "We are very excited to have one of the solar industry's leaders select McClellan Business Park for its world headquarters and manufacturing operations," said Ken Giannotti, Senior Vice President with McClellan Business Park, LLC. "We couldn't be more pleased with their decision."
"Solar Power, Inc.'s announcement is a brilliant example of how green businesses are thriving in the Sacramento region. As a leader in the solar industry, Solar Power, Inc.'s decision to make this commitment to our region's development is a milestone event for us," said Robert Burris, Deputy Director for SACTO, the Sacramento Region's leading facilitator of economic development. Roger Dickinson, Chair of the Sacramento County Board of Supervisors said, "The type of investment Solar Power, Inc. is making in our region is precisely what's needed to build sustainable economic growth. Sacramento will be the ultimate beneficiary of this move." And Rob Leonard, Director of Economic Development for Sacramento County said, "Solar Power Inc.'s development at McClellan reinforces Sacramento County as a national focal point for green-tech company growth."
"We are very pleased with our site selection at McClellan Business Park, and the outpouring of support we have received since our initial announcement," said Steve Kircher, Chairman and CEO of Solar Power, Inc. "The management team at McClellan Business Park has been incredible to work with and helped to make this decision an easy one for us. The site provides an excellent geographic location for us as we pursue a growing number of new business opportunities within California and across the country. It's the right move at the right time for us," Mr. Kircher concluded. Solar Power, Inc. anticipates receiving the bond proceeds and beginning construction on the new headquarters and manufacturing facility in July with completion in early 2011.
