DENVER—A Germany-based solar company plans to open its first North American manufacturing site in Denver.
Gov. Bill Ritter and Denver Mayor John Hickenlooper joined officials from SMA Solar Technology for the announcement Monday. The company plans to start production next year with 300 employees and a capacity to expand the work force to 700.
The plant will be in east Denver with access to Interstate 70 and a rail line.
SMA produces solar inverters, which convert the direct current generated by residential solar panels into alternating current for the electrical grid.
“SMA is a globally recognized leader in solar inverter manufacturing,” Ritter said during the announcement at the Capitol .
Ritter said the company’s decision to invest more than $20 million in the site emphasizes the progress of Colorado’s growing clean energy industry.
Ritter has made Colorado’s renewable energy industry a priority of his administration. Companies that have opened plants in the state include Danish wind-turbine maker Vestas Wind Systems.
SMA Solar Technology CEO Gunther Cramer said in the medium term, his company expects the U.S. market to become the largest solar market worldwide.
“With our new production facility in Denver,” Cramer said, “we will be able to reduce transportation and interim storage costs as well as currency exchange risks.”
Denver and the state offered the company financial incentives to locate to Colorado. Incentives from the city included a $405,000 grant for the number of full-time, permanent jobs created and a $50,000 grant to help with relocation costs, said Jeff Romine, chief economist with the Denver Office of Economic Development.
The company will likely also receive $130,000 in federal stimulus funds for training and hiring local workers.
Romine said SMA Solar considered 10 states when deciding on where to open a plant.
“There were two or three communities in Colorado that they looked at,” Romine said. “The state did a very effective job advocating for Colorado.”
The state offered about $2 million in incentives based on the jobs created, training and location.
SMA Solar, based in Niestetal, Germany, has about 3,000 employees in 11 countries.
