First Solar Inc. (FSLR) is planning to build its new U.S. manufacturing center in Mesa, Arizona. With an investment of $300 million, the manufacturing center will include four manufacturing lines with a capacity to produce more than 250 megawatts (MW) of advanced thin-film photovoltaic (PV) modules per year.
This facility, located on a 135-acre site, will be designed to accommodate future expansion. It will include a 3MW rooftop solar installation and an extensive ground-mounted PV testing facility. It will use First Solar’s efficient manufacturing process. The manufacturing center is expected to create approximately 600 jobs.
The construction is scheduled to begin in the second quarter of 2011 and end a year later in the second quarter of 2012. The building of the module factory will generate 400-500 construction jobs. Module shipments are expected to begin in the third quarter of 2012.
First Solar recently expanded its facility in Perrysburg, Ohio. Begun in October 2008 and completed in 2010, the expansion of the Perrysburg facility was a groundbreaking event for the company. The new factory along with this Ohio facility will increase the company’s U.S. production capacity to more than 500MW per year.
Currently, First Solar is also in the process of building two utility-scale PV projects in Arizona. One is the 290MW Agua Caliente project in Yuma County for NRG Energy Inc. (NRG). The second is the 17MW Paloma Solar Plant in Gila Bend for Arizona Public Service Company (APS). First Solar’s total North American project pipeline includes more than 2.4 gigawatts (GW) of projects and is expected to result in infrastructure investment of $6 billion over three years.
First Solar will benefit greatly from the steady recovery in the economy as well as favorable legislations supporting PV installations. Moreover, with a focus on geographically branching out its revenue base, technological enhancements and cost minimization, the company is adding a distinct edge over its competitors. With tellurium-based solar modules, the company offers a differentiated technology versus the market lot of silicon based peers.
However, its short-term growth may be partially hampered by the volatile euro, apprehension over reduction in German subsidies, falling crystalline silicon prices and the modules’ oversupply situation in the market. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Phoenix, Arizona, First Solar Inc. designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology. It sells its products to project developers, system integrators, and operators of renewable energy projects primarily in Europe with a distinct focus on Germany.
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