Evergreen Solar

Evergreen Solar, Inc. was a Massachusetts-based photovoltaic manufacturer that operated across the solar-panel value chain. Founded in 1994, the company developed and produced silicon wafers, photovoltaic cells, and finished solar modules. Its principal technological distinction was String Ribbon, a process intended to produce silicon wafers with less material waste than conventional wafer manufacturing. By integrating wafer, cell, and module production, Evergreen positioned itself as a technology-focused alternative to manufacturers that purchased wafers or concentrated on only one stage of the solar supply chain. The company was headquartered in Marlborough, Massachusetts, and became a publicly traded business on NASDAQ. During the expansion of the solar industry in the mid-2000s, Evergreen pursued significant increases in manufacturing capacity. In 2007 it announced plans to expand annual production from approximately 17 megawatts to 100 megawatts. A major part of this strategy was the development of a large manufacturing facility in Devens, Massachusetts. The factory opened in mid-2008 and was expected to reach an annualized production rate of about 80 megawatts by early 2009, with a further phase planned to add another 80 megawatts of annual capacity. Evergreen also sought an international manufacturing presence. In 2006, it joined Q-Cells and Renewable Energy Corporation in forming EverQ, a joint venture that established a photovoltaic manufacturing operation in Thalheim, Germany. EverQ was later renamed Sovello. The venture was expected to produce as much as 300 megawatts of photovoltaic modules by 2010. Although Sovello intended to pursue a public stock offering, it was instead acquired by Ventizz Capital Partners. Evergreen separately explored expansion in Asia and moved production toward China through a joint venture as competitive conditions changed. The company's growth plans were undermined by a combination of manufacturing economics, industry competition, and pressure to reduce costs. Evergreen announced that it would close its principal American factory in Devens and eliminate approximately 800 jobs there by March 2011. Michael El-Hillow, who became chief executive in September 2010, oversaw the closure at the end of March 2011 and the shift of production toward China. The company had received $21 million from the Commonwealth of Massachusetts, representing part of the cost associated with the Devens facility, making the closure particularly significant for the state's industrial and employment strategy. On August 15, 2011, Evergreen Solar filed for Chapter 11 bankruptcy protection with the stated intention of selling its assets. The filing marked the end of the company as an independent operating photovoltaic brand. Its history reflects the challenges faced by solar manufacturers that invested heavily in domestic capacity while competing in a rapidly globalizing market characterized by falling module prices, large-scale Asian production, and intense pressure on manufacturing costs.

Evergreen Solar was established in 1994 in the United States as a photovoltaic technology and manufacturing company. Its business was built around the idea that a solar manufacturer could improve economics by controlling multiple stages of production rather than buying finished wafers from outside suppliers. The company therefore developed capabilities spanning silicon wafers, photovoltaic cells, and completed solar panels. Its central proprietary technology was String Ribbon, a method for producing silicon wafers that was designed to reduce silicon consumption and manufacturing waste compared with conventional wafer-slicing approaches. During the expansion of the global solar market in the 2000s, Evergreen operated from Marlborough, Massachusetts, and became a NASDAQ-listed company. It pursued increased capacity in response to expected demand for photovoltaic modules. In 2007, the company announced a plan to raise annual production from approximately 17 megawatts to 100 megawatts. The strategy included a substantial new facility in Devens, Massachusetts. That factory opened in mid-2008 and was expected to operate at an annualized rate of roughly 80 megawatts by early 2009, with a second phase intended to add a comparable amount of capacity. Evergreen's international ambitions were reflected in its participation in EverQ, a joint venture formed in 2006 with Q-Cells and Renewable Energy Corporation. The venture established a manufacturing operation in Thalheim, Germany, and was expected to reach approximately 300 megawatts of photovoltaic-module production by 2010. EverQ was subsequently renamed Sovello. The venture considered a public offering but was instead acquired by Ventizz Capital Partners. Evergreen also considered further expansion in Asia and entered a joint venture connected with production in China. The company's manufacturing model became increasingly difficult to sustain as the solar industry expanded and global competition intensified. Large investments in domestic manufacturing capacity created substantial fixed costs, while international producers placed pressure on module prices. Evergreen's response was to reduce its United States manufacturing footprint and move production toward China. In 2010, Michael El-Hillow became chief executive officer, succeeding Richard Feldt. Under El-Hillow, the company closed the Devens factory at the end of March 2011 and announced the loss of approximately 800 jobs. The closure was important beyond the company itself because Evergreen had received $21 million from Massachusetts toward the cost of the Devens facility. On August 15, 2011, Evergreen Solar filed for Chapter 11 reorganization. The company indicated that it intended to sell its assets. The filing effectively ended Evergreen Solar's development as an independent manufacturer and brand. Its trajectory—from proprietary photovoltaic innovation and ambitious capacity expansion to overseas production, domestic factory closure, and bankruptcy—illustrates the financial and operational risks faced by solar companies during a period of rapid technological change, falling prices, and increasing international manufacturing scale.

• 2011

  Devens plant closes and production shifts toward China

  [1]Evergreen Solaren.wikipedia.org

  The Devens factory closes at the end of March, with approximately 800 jobs affected, while Evergreen shifts production toward China through its joint-venture arrangements.

• 2011

  Chapter 11 filing

  [1]Evergreen Solaren.wikipedia.org

  Evergreen Solar files for Chapter 11 reorganization on August 15 and states that it intends to sell its assets.

• 2010

  Michael El-Hillow becomes chief executive officer

  [1]Evergreen Solaren.wikipedia.org

  Michael El-Hillow is appointed chief executive officer in September as the company faces increasing manufacturing and competitive pressure.

• 2008

  Devens factory opens

  [1]Evergreen Solaren.wikipedia.org

  Evergreen Solar opens its Devens, Massachusetts, manufacturing facility, which was expected to reach an annual production rate of about 80 megawatts.

• 2007

  Production expansion plan is announced

  [1]Evergreen Solaren.wikipedia.org

  The company announces plans to increase annual production capacity from approximately 17 megawatts to 100 megawatts.

• 2006

  EverQ joint venture is formed

  [1]Evergreen Solaren.wikipedia.org

  Evergreen Solar joins Q-Cells and Renewable Energy Corporation to form EverQ, a photovoltaic manufacturing joint venture in Germany that is later renamed Sovello.

• 1994

  Evergreen Solar is founded

  [1]Evergreen Solaren.wikipedia.org

  Evergreen Solar is established as a United States photovoltaic technology and manufacturing company.

Technology-led, vertically integrated photovoltaic manufacturing with an emphasis on the proprietary String Ribbon wafer and cell-production process.

• Photovoltaic cells

  String Ribbon solar cells

  String Ribbon was Evergreen Solar's proprietary photovoltaic manufacturing technology. It produced silicon wafers for solar cells using a ribbon-based process intended to reduce material use and waste compared with conventional wafer production. The technology formed the basis of the company's identity and differentiated its products within the crystalline-silicon photovoltaic market.

• Solar wafers

  Evergreen Solar photovoltaic wafers

  Evergreen produced silicon wafers as part of its vertically integrated manufacturing model. These wafers were used internally or further processed into photovoltaic cells and modules. The company's control of wafer production was intended to support the economics and technical advantages of its String Ribbon process.

• Solar panels

  Evergreen Solar photovoltaic modules

  The company manufactured finished photovoltaic panels by integrating its wafer and cell production with module assembly. These modules represented the customer-facing output of Evergreen's manufacturing chain and were associated with the company's String Ribbon technology.

• 2011

  Close the Devens factory and shift production toward ChinaStrategy

  Background

  Evergreen Solar faced pressure to lower production costs and compete with increasingly international solar manufacturing operations.

  Action taken

  The company closed its Devens, Massachusetts, factory at the end of March and moved production toward China through a joint venture, affecting approximately 800 workers.

  Aftermath

  The closure reduced Evergreen's United States manufacturing presence but did not prevent the company from filing for Chapter 11 later in 2011.

  Source

• 2011

  File for Chapter 11 reorganizationOther

  Background

  After capacity expansion, factory restructuring, and continuing competitive pressure, Evergreen Solar faced financial distress.

  Action taken

  On August 15, Evergreen Solar filed for Chapter 11 protection with the intention of selling its assets.

  Aftermath

  The filing marked the end of Evergreen Solar as an independent operating photovoltaic brand.

  Source

• 2007

  Scale annual photovoltaic productionStrategy

  Background

  Evergreen Solar sought to expand during a period of strong expected growth in photovoltaic demand.

  Action taken

  The company announced plans to increase annual production from approximately 17 megawatts to 100 megawatts and invested in expanded manufacturing capacity.

  Aftermath

  The expansion created a larger domestic manufacturing footprint, including the Devens facility, but later exposed the company to significant fixed costs as market competition intensified.

  Source

1. 1Evergreen Solaren.wikipedia.org