BP Solar closes photovoltaic cell plant in Australia

19 November 2008

BP Solar, the solar power equipment manufacturing arm of BP, Europe's second biggest oil company, said it is winding up its 50MW photovoltaic cell and module manufacturing plant in Sydney Olympic Park, Australia by the end of March 2009, and move its production offshore to save cost.

BP Solar, which invests about $1.5 billion globally each year in alternative energy sources, has its manufacturing plants in Spain, India, France, China and the US, and, last year, it started expanding its solar cell manufacturing capacity in Madrid, and at its Indian solar plant at Bengaluru, which is a joint venture with the Tatas.

BP Solar, which has been operating in Australia for over 20 years, will axe nearly 200 staff, but will retain some of its marketing personnel.

BP Solar had refused a bailout package from the Australian government and now joins Danish wind giant Vesta's, which last year closed its plant in Australia and solar thermal power plant manufacturer Ausra, which relocated to California from NSW.

Industry minister Kim Carr said BP Solar's decision to close down was a let-down as the Australian government had spent huge amounts of money on solar technology research, which benefited companies like BP Solar.

BP Solar's move follows a growing exodus of renewable energy enterprises, including the closure of Danish wind giant Vesta's Portland factory last year and solar thermal power plant manufacturer Ausra's relocation from NSW to California.