Evergreen Solar to Lay Off 800 Employees, Marlborough HQ Safe for Now

The future looks grim for employees of Evergreen Solar, a green company that manufactures String Ribbon solar power products from various international locations, including their corporate office in Marlborough.

The company recently announced that they will close their manufacturing facility in Devens  by the end of their first quarter in 2011 due to the competitive prices surfacing in European and Chinese markets. This decision will impact approximately 800 employees.

President and Chief Executive Officer Michael El-Hillow said in the company’s press release, “Solar manufacturers in China have received considerable government and financial support and, together with their low manufacturing costs, have become price leaders within the industry. While the United States and other western industrial economies are beneficiaries of rapidly declining installation costs of solar energy, we expect the United States will continue to be at a disadvantage from a manufacturing standpoint.”

In December, the company announced a 10 percent decrease in sales prices, which, despite making their product more competitive in the green market, also lowered the budget for operating the Devens facility. El-Hillow said, “We believe this is the right long-term decision for the Company, and better positions the Company to complete its previously announced recapitalization plan…”

Evergreen Solar expects to save money and pursue new and more cost-effective technologies once the Devens branch is closed.

For now, it looks as though employees of the corporate office in Marlborough will not be severely impacted, although no mention of the corporate office was made in the press release. The company also has no intention of shutting down its high temperature filament plant in Michigan or its wafer facility in China.

Still, Evergreen Solar will suffer a swift financial blow when the Devens closing procedures commence. The company’s press release estimates they will lose $340 million to write off the building, $150 million in contractual payments, and $15 million in employee severance and out placement services.

The company’s press release can be viewed on their website. Questions or concerns may be directed to Michael W. McCarthy, Director of Investor Relations and Government Affairs at (508) 251-3261 or mmccarthy@evergreensolar.com