United Solar Ovonic LLC, a subsidiary of Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER), has selected the site for its next thin-film solar panel manufacturing facility. Under a ten-year lease agreement between a unit of General Development Company LLC of Southfield, Mich., and United Solar Ovonic, General Development will construct a 160,000 square foot manufacturing facility for United Solar Ovonic at the Auburn Hills Commerce Park in Auburn Hills, Mich., near the current United Solar Ovonic manufacturing facility.
Construction of the new facility is expected to begin in July following site plan approvals and issuance of building permits. Completion and occupancy of the new facility is scheduled for May 2006. When fully operational, the facility is expected to double United Solar Ovonic’s manufacturing capacity and to employ approximately 200 additional people.
Compared to conventional solar technology utilizing single crystal or polycrystal silicon, United Solar Ovonic’s thin-film solar cells are 100 times thinner, do not use crystalline silicon material and, therefore, are unaffected by the worldwide scarcity of silicon.
Tax credits valued at more than $6.1 million over 20 years and a $100,000 Economic Development Job Training Grant was an important factor in United Solar Ovonic’s decision to locate the facility in Michigan. To further support the project, the city of Auburn Hills has proposed a tax abatement valued at $109,100 and is willing to support Next Energy personal property tax exemptions that could be worth an estimated $6.9 million over the next eight years.