The US-based energy company SunPower Corporation has announced to shut its manufacturing business. SunPower is a pioneer in designing and manufacturing solar panels. The company in a statement said that it will create a new company to handle its manufacturing business. The new company will be called Maxeon Solar. It will set up its head office out of America. The newly floated company will be based in Singapore.
The decision to move the business out of the country means the US will lose a major solar panel manufacturer. The development comes in the wake of the government’s decision to slap fresh tariffs on imports of solar equipment. The government said that the imposition of tariffs was aimed at providing domestic players a chance to grow. But SunPower was granted exemption from the duties because its products are most efficient in the industry. SunPower is the second American company in the last three months to spin off its business. The country’s largest panel maker First Solar has already shut its solar farms business. The company in September announced that it will now focus on manufacturing business.
SunPower has described its decision as a natural evolution of the solar business industry that has been growing at length. While SunPower will continue as a solar installation company, it will sign a pact with Maxeon Solar that will look after panel production operations. The panel making companies had to install their manufactured equipment on their own to hold the market. But the industry today has grown extensively. It is vast enough to give space to firms to focus on specialized services. The statement added that newly floated firm will get its first CEO from the Technologies business which is being managed by Jeff Waters. Maxeon Solar will set up factories in countries like Malaysia, France, Mexico, and the Philippines. Also, a Chinese supplier of silicon wafers has pledged an equity investment of USD 298 million in the new business.