Solyndra Inc., a San Francisco Bay Area solar power system manufacturing company, said that it is closing one of its factories to save $60 million in capital expenditures, laying off 40 employees and letting the contracts for more than 100 temporary workers expire, according to The Los Angeles Times.
The Los Angeles Times reported that the steps were needed despite a $535-million federal loan guarantee, more than $1 billion in private equity funds and supportive visits from luminaries such as California Gov. Arnold Schwarzenegger, U.S. Energy Secretary Steven Chu and President Barack Obama.
Earlier this year, the company’s founding chief executive, Chris Gronet, stepped down and the company abandoned plans for a much-anticipated initial public offering because of difficult market conditions, The Times reported.
Solyndra filed documents in December 2009 to go public and said at the time it intended to raise $300 million in a public stock offering. Earlier this year, the company said it pulls in revenue upward of $174 million and recently received a $535 million loan guarantee from the Department of Energy for a new California manufacturing facility.
Solyndra is closing down its first factory just months after opening its second, where the company said expansion will be delayed, The Times reported.
SourceI heard about this on FNC this morning. The article goes on to say that their projected output will be cut by over 1/2 of their original target. A big problem for them is that China makes a cheaper product. I have a feeling that is going to be true for many of the "Green Energy" plans of the left.
