Chinese Solar Panel Production Deal

Solar-panel production deal moving forward
By Thomas V. Bona
BusinessRockford.com
Feb 09, 2009 @ 05:35 PM


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A pending deal to bring a Chinese solar-panel manufacturer here could add 240 well-paying jobs, help nearby businesses go green for less money and put Rockford on the map for future such developments.The cost? More than $1 million in tax breaks, 10 acres of free land and commitments by city and county officials to buy hundreds of thousands of dollars in solar panels.City officials who are negotiating the deal with Wanxiang Group say it’s more than worth it.“They’re just a huge, huge corporation, so obviously we want them to be happy here, comfortable here and welcome here,” said Rob Lamb, the city’s industrial development manager. “They also were impressed by Rockford in that we didn’t look at this as just a deal. We look at this as the start of a relationship that would continue over a long period of time.”The Rockford City Council’s planning and development committee recommended approval of the deal tonight. It’ll go to City Council for approval next week. Winnebago County and Greater Rockford Airport Authority officials also need to approve their parts in the deal.If approved, the photovoltaic solar-panel facility would be at the city’s Logistics Park near the airport. Wanxiang is planning four phases totaling 160,000 square feet. Lamb said each phase would include about 60 jobs, paying $40,000 to $70,000 a year plus benefits. The company hopes to fill most positions locally.Construction on phase one would start by July, with the facility up to full production within 18 months of starting. Future phases would roll out according to demand for the panels.Wanxiang would invest $4 to $6 million in each phase.The company would get at least $1.2 million in tax increment financing money generated from the project over the next 18 years for the first phase. Future phases could guarantee Wanxiang more TIF money. The company also would get other state tax benefits by the River Edge Redevelopment Zone.Besides the 10 acres it’s getting — worth about $650,000 — Wanxiang would have an option on an additional 10 acres. That land could be used for additional expansion, for a Wanxiang sister company or for another company attracted here by Wanxiang.In the deal, city officials would commit to buying about $200,000 worth of Wanxiang solar panels to power some water pumping stations, while county officials would commit to $200,000 worth for its justice center. The airport would donate 100 to 200 acres for a solar farm operated by Wanxiang.The city also would pay half the cost of acquisition and installation of solar panels by companies in the surrounding Global Trade Park in the first five years of the deal, also using TIF dollars. For the following 10 years, the city would pay half the cost of acquisition only.“It helps these other companies diminish their electric loads, thus saving money,” Lamb said. “It helps the city and the community to pursue going green.”Wanxiang is China’s second-largest privately held company, with revenues in the billions of dollars annually. Its Wanxiang America subsidiary had $1 billion in sales last year.Last summer, Wanxiang and local officials signed an agreement to work on the deal, and have been ironing out specifics since. The company considered communities throughout the Midwest, and Rockford area officials feel by winning this deal they also attract other companies looking to invest in the United States. They’re particularly excited about alternative energy as a growth industry for the region, replacing well-paying manufacturing jobs that have been lost.“Wanxiang in China produces electric cars, electric buses, all kinds of things which they have not brought to the U.S. as of yet,” Lamb said. “There are other energy-related opportunities that fall into the realm of manufacturing, which is something Rockford excels at.”Staff writer Thomas V. Bona may be contacted at 815-987-1343 or tbona@rrstar.com.

From: http://www.businessrockford.com

Link to: http://www.usaalternativeenergynow.blogspot.com/