SunPower’s business has been under attack from lower priced Chinese competitors. It’s now taking action to lower its own costs, so it can protect its premium brand, without losing share and earnings.
It entered a contract with Jabil Circuit to build panels in Mexicoi. This is part of a plan to “implement regional panel assembly for improved customer service and reduced costs.”
NEW YORK (Reuters) – Solar power company SunPower Corp (SPWRA.O) said on Monday it had signed a contract with Jabil Circuit Inc (JBL.N) to build solar panels in Mexico beginning in the second half of 2009.
Solar companies have struggled in recent months as financing for the clean power systems dried up amid the worst banking crisis in decades, forcing them to sharply cut prices for the photovoltaic systems that turn sunlight into electricity.
SunPower, the market leader in the North American market, had posted an unexpected first-quarter loss, but said last week at the Reuters Energy Summit the market for solar power was rebounding, helped in part by the federal stimulus package passed earlier this year.
Financial details and planned capacity Mexican operations under the contract with Jabil were not disclosed
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