Joint Venture will Accelerate Cost Reduction Initiatives Through the
Establishment of Module Assembly Facilities in China
ROCHESTER HILLS, Mich. and TIANJIN, China, Feb. 7
/PRNewswire-FirstCall/ -- Energy Conversion Devices, Inc. (ECD Ovonics)
(Nasdaq: ENER) today announced that United Solar Ovonic, its wholly owned
subsidiary, has entered into an agreement to form a joint venture with
Tianjin Jinneng Investment Company (TJIC) to establish a 30-megawatt (MW)
photovoltaic (PV) module assembly facility in Tianjin, the People's
Republic of China.
The joint venture, to be owned 75% by United Solar Ovonic and 25% by
TJIC, will assemble solar modules using solar cells supplied by United
Solar Ovonic's Michigan-based photovoltaic cell manufacturing facilities
and is expected to begin operation in 2008. The joint venture will have
nonexclusive rights to sell PV modules and systems in China. Sales outside
China will be through United Solar Ovonic. The joint venture will also have
certain rights to sell small products up to 32 watts outside of China.
The parties anticipate that the module assembly equipment will be
installed in mid-2008. United Solar Ovonic and ECD Ovonics personnel will
supervise the installation of equipment and provide assistance and training
during the startup phase of the joint venture.
The agreement is subject to the approval of Chinese authorities.
United Solar Ovonic's parent company, ECD Ovonics, recently accompanied
U.S. Commerce Secretary Carlos M. Gutierrez on a Business Development
Mission to China, and credits its participation in that mission as being
instrumental in leading to the joint venture.
"China is a key market for American businesses, and I am pleased that
United Solar Ovonic has formed a joint venture agreement with TJIC to
establish a solar module assembly facility in China," said Commerce
Secretary Gutierrez. "This unique alliance will encourage export of solar
cells manufactured in the U.S. creating jobs for American workers, and is a
tangible result from our trade mission last November. The trading
relationship between U.S. businesses and Chinese companies is critical for
both countries' continued economic success."
In a joint statement, James R. Metzger, Executive Vice President and
Chief Operating Officer of ECD Ovonics, and Subhendu Guha, President and
Chief Operating Officer of United Solar Ovonic, said, "The significance of
this joint venture to us is two-fold. First, it provides us with a vehicle
to access the rapidly expanding Chinese market, and second, it accelerates
our cost-reduction initiatives through the establishment of assembly
facilities in China, tapping the highly skilled and low-cost labor. We have
been active in China for several years and are pleased to expand our
activities and establish our first solar module assembly facility in China
with TJIC, which has extensive knowledge and operating experience in the
business environment in the Chinese market."
"We are very pleased to have formed this joint venture with United
Solar Ovonic, the leader in thin-film photovoltaic products and technology
and look forward to a long and fruitful collaboration with our joint
venture partner," said Yun Shang Tong, General Manager of TJIC. "The
renewable energy laws passed by the Chinese Government envision 10% of
total power from renewable energy by 2020. TJIC has over 5 gigawatts of
installed electrical generating capacity using traditional energy, and we
look forward to our joint venture becoming a leading supplier of clean
energy in China using United Solar Ovonic's unique flexible thin-film PV
modules."
United Solar Ovonic currently has 58MW of annual production capacity,
which includes the new 30MW per annum Auburn Hills 2 manufacturing facility
the company placed in service in December 2006. United Solar Ovonic is also
constructing two 60MW per annum PV cell manufacturing facilities in
Greenville, Mich., which are expected to begin operation in late 2007 and
mid- 2008. The company's expansion plan will increase United Solar Ovonic's
manufacturing capacity to 118MW, 178MW and over 300MW per annum by the end
of calendar years 2007, 2008 and 2010, respectively.
About United Solar Ovonic
United Solar Ovonic, building on technology invented and pioneered by
ECD Ovonics, is the world leader in thin-film amorphous photovoltaics.
Because of characteristics unique to the United Solar Ovonic solar cell
technology, such as lightweight, ruggedness and flexibility, it is ideal as
building-integrated photovoltaic roofing systems for residential and
industrial customers. ECD Ovonics holds the basic patents covering the
continuous roll-to-roll manufacturing of thin-film amorphous-silicon alloy
multi-junction solar cells and related products. More information is
available at http://www.uni-solar.com.
About Tianjin Jinneng Investment Company
Tianjin Jinneng Investment Company (TJIC) is engaged in the investment
and business management for power, thermal energy and renewable energy. It
has grown significantly in the last 10 years with its assets exceeding RMB
23.5 billion Yuans and has been a China Fortune 500 company for the last
three years. With its focus on the energy sector, Tianjin has 5.6 gigawatts
of installed capacity catering to 83% of the electrical needs for the City
of Tianjin, the third largest city in China after Beijing and Shanghai. It
has been recognized as one of "the 100 super enterprises of Tianjin" from
2003 to 2006.
About ECD Ovonics
ECD Ovonics is the leader in the synthesis of new materials and the
development of advanced production technology and innovative products. It
has invented, pioneered and developed its proprietary, enabling
technologies in the fields of energy and information leading to new
products and production processes based on amorphous, disordered and
related materials. The Company's portfolio of alternative energy solutions
includes Ovonic thin-film amorphous solar cells, modules, panels and
systems for generating solar electric power; Ovonic NiMH batteries; Ovonic
hydride storage materials capable of storing hydrogen in the solid state
for use as a feedstock for fuel cells or internal combustion engines or as
an enhancement or replacement for any type of hydrocarbon fuel; and Ovonic
fuel cell technology. ECD Ovonics' proprietary advanced information
technologies include Ovonic phase-change electrical memory, Ovonic
phase-change optical memory and the Ovonic Threshold Switch. ECD Ovonics
designs and builds manufacturing machinery that incorporates its
proprietary production processes, maintains ongoing research and
development programs to continually improve its products and develops new
applications for its technologies. ECD Ovonics holds the basic patents in
its fields. For more information about ECD Ovonics visit http://www.ovonic.com
This release may contain forward-looking statements within the meaning
of the Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are based on assumptions which
ECD Ovonics, as of the date of this release, believes to be reasonable and
appropriate. ECD Ovonics cautions, however, that the actual facts and
conditions that may exist in the future could vary materially from the
assumed facts and conditions upon which such forward-looking statements are
based. The risk factors identified in the ECD Ovonics filings with the
Securities and Exchange Commission, including the Company's most recent
Annual Report on Form 10-K, could impact any forward-looking statements
contained in this release.
SOURCE ECD Ovonics
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Related links:
http://www.ovonic.com
http://www.uni-solar.com/
CONTACT:
Ghazaleh Koefod, investor relations, or Dick
Thompson, media relations, both of Energy Conversion Devices,
Inc., +1-248-293-0440
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