Suntech Power Looks for Factory Space in the U.S.

Suntech Power plans to decide within six months where it will set up a factory in the United States to serve the growing market.

The Monday announcement isn't surprising given that the Chinese company previously expressed an interest in setting up manufacturing in the United States. Producing solar panels in the country would reduce the costs of transporting products, which are mainly produced in China.

It would follow a slew of European and other Asian companies that are expanding their production here. Germany-based Schott Solar, for example, is celebrating the opening of a solar panel and solar thermal receiver factory in New Mexico today.

Suntech currently produces its crystalline silicon solar panels in China and its building-integrated solar products in Japan, the company said. It expanded its solar cell production capacity to 1 gigawatt per year by the end of 2008, though it also said earlier this year that it was producing in 50 percent to 60 percent capacity as a result of the sluggish market demand.

The company also is building a factory in Shanghai for producing amorphous silicon panels and planning to start with a 50-megawatt capacity in the second half of this year, according to its 2008 annual report.

Suntech will likely find warm reception among states eager to create a solar manufacturing workforce. New York recently lured SpectraWatt away from Oregon. Oregon has attracted SolarWorld from Germany and Sanyo from Japan.