Jabil making waves in solar panel market

BP Solar, part of BP Alternative Energy, which itself is a division of energy supplier BP, announced an agreement with Jabil Circuit Inc. (St. Petersburg, FL) for that company to manufacture solar modules for the European market at Jabil’s plant in Poland. The agreement calls for an initial capacity of 45 megawatts in 2009 with the opportunity for expansion as demand increases.

Much like past transitions in the automotive, packaging, and other markets, plastics are starting to have a big impact in the solar panel market as it grows, and the need for more cost-efficient manufacturing, often at the expense of metals and glass, creates opportunity for plastics processors.

BP Solar selected Jabil as a manufacturing partner to help reduce the cost of manufacturing BP’s proprietary solar products, and help deliver the highest lifetime value to its customers, said Reyad Fezzani, CEO of BP Solar. “We are confident that Jabil’s focus on manufacturing excellence will meet BP Solar’s exacting standards for safety, reliability, and product quality,” said Fezzani, who explained that Jabil will manufacture modules designed by BP Solar.

Another advantage to the partnership is “Jabil’s ability to locate solar panel assembly operations in the major consuming regions of the world to optimize logistics,” said Brian Althaver, VP strategic development for Jabil’s renewable energy business. “[This] affords BP Solar the opportunity to serve their customers more efficiently.”

BP Solar currently has its own manufacturing facilities in the United States, Spain, India, and China. However, earlier this year it announced the elimination of about 620 jobs, 480 of those at two cell manufacturing and module assembly plants outside Madrid, and 140 jobs at its Frederick, MD facility.

Commenting on the market outlook for solar, BP’s Fezzani said, “While economic conditions have slowed growth in the past year, we have seen a significant uptick this past quarter. We expect that to continue.”

Early this year, Jabil Circuit said it will expand its reach into the medical market, creating a single-use device (SUD) business unit. Making the announcement at Medical Design & Manufacturing West (MD&M), Tony Allan, Jabil’s VP global business units, told MPW that his company’s existing exposure to medical has increased since 2000, with annual revenues from the sector growing from $24 million at that time to $800 million today.

Also, in its report on its FY09 financial results, dated Sept. 29, the company stated it expects to divest its automotive electronics manufacturing entity in Western Europe during its first fiscal quarter of fiscal 2010. —Clare Goldsberry