Solar-panel maker plans Phoenix-area plant

PHOENIX (AP) — Gov. Jan Brewer on Monday announced plans for a Chinese-owned solar panel maker to build its U.S. headquarters and a manufacturing plant in the Phoenix area, propelling one of the nation’s sunniest states toward a more global presence in the renewable energy industry.

Suntech Power Holdings Co. said it expects to start building photovoltaic panels at the facility by the third quarter of 2010. The company, which has more than 9,000 employees, expects to eventually employ 250 or more people at the plant.

Suntech said it chose the Phoenix area because of Arizona’s leadership in solar research through Arizona State University and statewide renewable energy policies. The company plans to decide on the precise location of the plant in the coming weeks.

The first phase of Suntech’s 100,000-square-foot facility will bring a $13 million investment and 125 jobs, the governor said. If the company’s investment grows to at least $25 million, it will qualify for property tax reductions as part of the state’s Renewable Energy Tax Incentive program.

“It’s an example of how an investment can work and be fiscally responsible,” said Barry Broome, president of the Greater Arizona Economic Council. “This is a company that’s capable of creating thousands of jobs.”

Brewer said a majority of the jobs would be high-paying positions with health-care coverage.

“Trust me, they are not going to be the last ones,” Brewer said.

Suntech Chairman and CEO Dr. Zhengrong Shi said setting up in Arizona is the first step in a long-term, strategic investment in the North American market.

“The leadership shown by the U.S. government in advancing renewable energy will only improve the environment for further investments in the coming years,” Shi said.

He said locating the plant close to Suntech’s U.S. customers will reduce the time, costs, and emissions associated with shipping solar panels.