BP Solar lowers cost in drive toward grid-competitive electricity prices
Focus on growth through lower cost supplies and manufacturing will lead to phase out of module assembly at Frederick, MD, plant. Silicon casting, wafering, and cell manufacture to continue.
Frederick, MD - BP Solar today announced plans to refocus its manufacturing activities globally, and to reduce its unit costs by 25 percent by the end of 2010. It will achieve this by accessing lower cost supplies, and by continuing to grow only its most competitive manufacturing worldwide.All affected eligible employees will receive job placement assistance and transitional resources.
In 2008 BP Solar signed a series of strategic contracts with a number of global high quality suppliers of wafers and cells to supplement its own manufacturing capacity. This has enabled it to increase sales and lower costs. In spite of the reductions announced today, BP Solar’s total global manufacturing capacity is expected to increase in 2009 and 2010.
“This comes at a time when solar markets are unsettled by the impact of the global economic environment, an over-supplied market and increased competition,” said Fezzani.
“While the long term fundamentals for solar power remain strong, soft demand, lack of available credit for many players, and substantial price reductions due to high inventories require us to respond to remain competitive. In this environment access to low cost manufacturing and supply is critical to our profitability and to serve a growing customer base.”
Notes for editors
BP Alternative Energy:Last year BP invested about $1.5 billion in alternative energy with more than 70 percent of that in the United States. BP Alternative Energy businesses are focused on cost-competitive solar photovoltaic systems, US onshore wind, and biofuels; through its Hydrogen Energy joint venture with Rio Tinto, BP is also progressing two carbon capture and storage demonstration projects.
In addition to being the largest oil and gas producer in the US, BP is the company that is investing in the most diverse energy portfolio in the industry.
Since 2004, BP has invested more than $34 billion in the US to increase existing energy sources, extend energy supplies, and develop new low-carbon technologies. BP supports a diverse energy mix - encouraging investment in both traditional and non-traditional energy sources to meet America’s energy needs today and in the future.
US: Tom Mueller - 1 281 366-1236
UK: Robert Wine - 44 (0) 20 7496 4076
Spain: Inforpress: Rocio Perez de Sevilla - 34 91 564 07 25
