Solyndra Shuts Doors – Official Press Release
The Fremont, California based company Solyndra, which received $535 million Energy Department loan guarantee, shut its doors Wednesday, ceasing all operations and laying off 1,100 workers in preparation to file for bankruptcy protection.
President Obama visited the plant in May 2010, when the company received the federal loan guarantee as part of the $787 billion economic stimulus package, at which time the company executives said they expected to add employees. The solar panel maker raised more than $1 billion from investors to build a state-of-the-art robotic factory that opened less than a year ago.
Solyndra is the third such company to file for bankruptcy in recent days. Evergreen Solar Inc. of Marlboro, Mass., filed for Chapter 11 on August 15. Spectrawatt Inc. of Hopewell Junction, N.Y., also filed for Chapter 11 bankruptcy protection August 19.
Director of Corporate Communications Dave Miller confirmed Wednesday that the company has suspended its manufacturing operations and informed Job Mouse that the company does not plan to have anyone on camera Wednesday.
Job Mouse received the official press release at 8:45 a.m. Wednesday:
Solyndra Suspends Operations to Evaluate Reorganization Options
FREMONT, Calif., August 31, 2011 – Solyndra LLC, the American manufacturer of innovative cylindrical solar systems for commercial rooftops today announced that global economic and solar industry market conditions have forced the Company to suspend its manufacturing operations. Solyndra intends to file a petition for relief under Chapter 11 of the U.S. Bankruptcy Code while it evaluates options, including a sale of the business and licensing of its advanced CIGS technology and manufacturing expertise. As a result of the suspension of operations approximately 1,100 full-time and temporary employees are being laid off effective immediately.
Despite strong growth in the first half of 2011 and traction in North America with a number of orders for very large commercial rooftops, Solyndra could not achieve full-scale operations rapidly enough to compete in the near term with the resources of larger foreign manufacturers. This competitive challenge was exacerbated by a global oversupply of solar panels and a severe compression of prices that in part resulted from uncertainty in governmental incentive programs in Europe and the decline in credit markets that finance solar systems.
“We are incredibly proud of our employees, and we would like to thank our investors, channel partners, customers and suppliers, for the years of support that allowed us to bring our innovative technology to market. Distributed rooftop solar power makes sense, and our customers clearly recognize the advantages of Solyndra systems,” said Solyndra’s president and CEO, Brian Harrison. “Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion. Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”
Customers who have implemented Solyndra solutions can be assured that their systems will generate economical, clean, solar power for decades.