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First Solar, Inc. (FSLR) has acquired a 1.2 million square foot facility in Troy Township, Ohio, to optimize the distribution of modules. The facility will be repurposed into a new distribution center serving First Solar's Ohio manufacturing footprint, with plans to expand capacity to approximately 6 gigawatts by the end of 2023. The company also expects to invest over $2 billion in new manufacturing facilities in Alabama and Louisiana, with a goal of reaching 14 gigawatts of fully vertically integrated US solar manufacturing capacity by 2026. Additionally, First Solar is investing up to $370 million in a dedicated R&D innovation center in Perrysburg, Ohio, expected to be completed in 2024.
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The acquisition of a 1.2 million square foot facility by First Solar, Inc. represents a strategic move to enhance the company's supply chain infrastructure. The expansion of logistics capabilities is a direct response to the anticipated growth in manufacturing capacity. By repurposing the facility into a distribution center, First Solar is poised to improve the efficiency of its module delivery system. This is crucial for maintaining competitive lead times in an industry where project timelines are often tight and delays can lead to significant cost overruns.
Furthermore, the decision to locate the distribution hub in close proximity to the company's manufacturing facilities underscores a commitment to reducing transportation costs and minimizing the environmental impact of shipping. The potential for the facility to double as a light-scale satellite manufacturing location also indicates flexibility in the supply chain, allowing for rapid adaptation to changes in demand or production needs.
From a financial perspective, First Solar's investment in the Ohio facility is indicative of a broader capital allocation strategy aimed at bolstering the company's manufacturing capabilities in the United States. With an additional $2 billion earmarked for new facilities in Alabama and Louisiana and up to $370 million for a dedicated R&D innovation center, First Solar is clearly prioritizing long-term growth and technological leadership.
Investors should note the impact of such investments on the company's financials. While they may lead to increased operating expenses in the short term, the potential for reduced operating costs and enhanced revenue generation as the facilities reach full capacity could be significant. The commitment to expanding to over 7 GW of annual nameplate capacity in Ohio alone and 14 gigawatts of fully integrated US solar manufacturing capacity by 2026, suggests an aggressive growth trajectory that may enhance First Solar's market position and provide economies of scale.
The renewable energy sector is rapidly evolving and First Solar's strategic investments are a testament to the growing demand for solar technology. By increasing its manufacturing footprint to over 7 GW of capacity in Ohio and projecting a total of 14 GW across the United States by 2026, the company is not only preparing to meet domestic demand but also positioning itself as a major player in the global solar market.
The investment in a dedicated R&D innovation center further highlights the company's commitment to technological advancement and cost reduction in solar module production. As solar energy continues to become more cost-competitive with traditional energy sources, such advancements could play a pivotal role in accelerating the adoption of solar technology and driving the industry forward.
1.2 million square foot facility in Troy Township, Ohio to be repurposed to optimize distribution of modules
TEMPE, Ariz.--(BUSINESS WIRE)--
First Solar, Inc. (Nasdaq: FSLR) today announced that it has acquired a 1.2 million square foot facility in Troy Township, Ohio. The facility, formerly known as Peloton Output Park, is expected to be repurposed into a new distribution center serving First Solar’s Ohio manufacturing footprint, which comprises three manufacturing facilities with a combined annual nameplate capacity of approximately 6 gigawatts (GW) of capacity at the end of 2023.
“As we prepare to expand our Ohio capacity by almost a gigawatt this year, there’s a need for our logistics and distribution capabilities to scale to match manufacturing growth,” said Mike Koralewski, chief supply chain officer of First Solar. “We intend to use this facility to ensure the efficient and timely shipping of modules to our customers, repurposing it into a dedicated distribution hub for the largest solar manufacturing footprint in the Western Hemisphere. We expect that this approach will allow us to streamline logistics operations, while reducing operating costs and contributing to our cost reduction roadmap.”
Koralewski added, “In the long term, the flexible space that the facility affords us could also serve as a light-scale satellite manufacturing location with the potential to support our factories and R&D center in Ohio.”
In addition to expanding its Ohio footprint to over 7 GW of annual nameplate capacity this year, the solar technology and manufacturing company expects to invest over $2 billion in new manufacturing facilities in Alabama and Louisiana. First Solar expects to have 14 gigawatts of fully vertically integrated US solar manufacturing capacity by 2026. Additionally, First Solar is investing up to $370 million in a dedicated R&D innovation center in Perrysburg, Ohio, which is expected to be completed in 2024.
About First Solar, Inc.
First Solar is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules advancing the fight against climate change. Developed at R&D labs in California and Ohio, the company’s advanced thin film PV modules represent the next generation of solar technologies, providing a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV modules. From raw material sourcing and manufacturing through end-of-life module recycling, First Solar’s approach to technology embodies sustainability and a responsibility towards people and the planet. For more information, please visit www.firstsolar.com.
For First Solar Investors
This press release contains various “forward-looking statements” which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements concerning 1) First Solar’s decision to acquire a 1.2 million square foot facility in Troy County, Ohio; 2) the intent to repurpose this facility into a distribution center and the expectation that this approach will streamline logistics operations, while reducing operating costs and contributing to the company’s cost reduction roadmap; 3) the expectation that First Solar’s Ohio manufacturing footprint will exceed 7 GW of annual nameplate capacity in 2024; 4) the expectation that First Solar will invest over $2 billion in two new manufacturing facilities in Alabama and Louisiana; 5) the expectation that First Solar will have over 14 GW of annual nameplate capacity by 2026; and 6) the expectation that First Solar’s new R&D center in Ohio will be completed in 2024. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Forward-looking statements are only predictions based on First Solar’s current expectations and First Solar’s projections about future events and therefore speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. First Solar undertakes no obligation to update any of these forward-looking statements for any reason, whether as a result of new information, future developments or otherwise. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause First Solar’s actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by these statements. These factors include, but are not limited to, the matters discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our most recent Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q, as supplemented by our other filings with the Securities and Exchange Commission.
