BP Solar has shut down operations at its silicon wafer manufacturing plant in Frederick, eliminating 320 Maryland manufacturing jobs there.

According to WashingtonBizJournals, the company blames falling prices for solar products and high costs of manufacturing components itself. BP Solar began outsourcing production operations last year. It says the decision has cut costs by more than 45 percent.

“This was a difficult decision and we deeply regret the impact it will have on our employees and the community,” said CEO Reyad Fezzani. “We have a long history in Frederick and I am thankful for the support of all our colleagues, the community and local, state and federal officials.”

The company blames falling prices for solar products and high costs of manufacturing components itself. BP Solar began outsourcing production operations last year. It says the decision has cut costs by more than 45 percent.

BP Solar is shifting focus to design, installation and maintenance of solar power systems. Prices for solar modules have dropped by as much as 50 percent since the onset of the recession, it says.

In 2009, BP Solar announced its global sales rose more than 26 percent. The company said it expects sales growth exceeding 50 percent in 2010.

BP Solar said it is increasingly focused on developing utility-sized projects. Fezzani said about 70 percent of solar industry jobs are in design, installation and maintenance. As a major project developer, BP Solar will help create hundreds of these new jobs, he said.

Still, the company’s announcement was “a big hit” to Frederick’s economy, said state Sen. David Brinkley, R-Frederick.

“They’re obviously going to be making the solar cells somewhere, but they’re choosing physically to relocate and not be here, and that’s indicative of, I guess, the environment — the business environment and the economy,” Brinkley said.

Just four years ago, BP Solar committed to a $97 million expansion of its North American headquarters in Frederick.

BP Solar will maintain sales and marketing, research and project development jobs and keep about 110 positions in Frederick.

This entry was posted on Wednesday, March 31st, 2010 at 10:49 pm and is filed under Manufacturing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.