Green Tech and Solar Company Solyndra to Close One Factory, Cut Jobs

Solyndra Inc., a San Francisco Bay Area solar power system manufacturing company, said that it is closing one of its factories to save $60 million in capital expenditures, laying off 40 employees and letting the contracts for more than 100 temporary workers expire, according to The Los Angeles Times.

The Los Angeles Times reported that the steps were needed despite a $535-million federal loan guarantee, more than $1 billion in private equity funds and supportive visits from luminaries such as California Gov. Arnold Schwarzenegger, U.S. Energy Secretary Steven Chu and President Barack Obama.

Earlier this year, the company’s founding chief executive, Chris Gronet, stepped down and the company abandoned plans for a much-anticipated initial public offering because of difficult market conditions, The Times reported.

Solyndra filed documents in December 2009 to go public and said at the time it intended to raise $300 million in a public stock offering. Earlier this year, the company said it pulls in revenue upward of $174 million and recently received a $535 million loan guarantee from the Department of Energy for a new California manufacturing facility.

Solyndra is closing down its first factory just months after opening its second, where the company said expansion will be delayed, The Times reported.

 Instead of reaching 610 megawatts of production capacity by 2013 as initially planned, the company will aim for up to 300 megawatts, The Times added.

The newspaper explains that competition from other solar panel makers is a major culprit, with manufacturers in China offering hard-to-beat prices.

Solyndra designs and manufactures solar PV systems for the large commercial rooftop market.

Using proprietary cylindrical modules and thin-film technology, Solyndra provides rooftop solar systems. Lightweight and non-penetrating, Solyndra panels require no ballast in winds up to 130 mph. and the cylindrical design allows the system to capture more energy on most rooftops.

Solyndra manufactures all of its solar panels in the United States.