Satcon Technology Corporation (NASDAQ CM: SATC), a manufacturer of inverters for solar power installations, announced a manufacturing agreement with GCL Solar Systems Limited, one of China’s largest utility solar power plant developers.
Under the terms of the agreement, GCL Solar is commissioning a manufacturing facility in Nanjing, China, which is expected to be capable of producing over 500 megawatts (MW) of Satcon’s 500kW PowerGate Plus inverters in 2011.
Satcon will provide GCL Solar with the core manufacturing processes and technologies for the PowerGate Plus solutions for final assembly at the GCL Solar plant. GCL Solar has agreed to purchase from Satcon the capacity to produce a minimum of 300MW per year. GCL Solar will sell the inverters in the Chinese solar PV market, and use them in GCL Solar development projects.
Production out of the Nanjing manufacturing facility is expected to begin in March of 2011, and when combined with the expanded Burlington, Ontario operations is expected to increase worldwide manufacturing capacity to over 2 gigawatts (GW) annually.
In August, Satcon reported record 2Q sales, as the solar inverter industry continues to benefit from strong demand and supply constraints.