Saturday, December 20, 2008

Solar energy plant could bring 600 jobs

Brent Ruffner News-Bulletin Staff Writer; bruffner@newsbulletin.com

Belen State and local officials hope the announcement of the new $840 million expansion of a global solar energy production company to Belen will help transform New Mexico into a pioneer for alternative energy.

Signet Solar Inc., which will begin production at its Belen plant in 2010, will eventually create up to 600 jobs and have both a manufacturing facility and a solar generation center at the Rancho Cielo development off Interstate 25, according to Gov. Bill Richardson's office.

Signet has identified an 80-acre site for its manufacturing facility and 600 acres for its solar farm. The plant will initially be 100,000 square feet and eventually expand to 400,000 square feet, the governor's office said.

On Tuesday, Richardson announced an agreement had been struck between the state and the California-based company to produce solar panels for commercial use.

The solar company was formed in 2006 and produces large, thin, silicon modules that convert sunlight directly into electricity.

"I've been dedicated to making New Mexico a national leader of renewable energy and the creation of green jobs," said Richardson, who spoke of his time as governor. "This project will create hundreds of jobs and reaffirm New Mexico as a clean energy state and major player in our nation's effort to build a new, clean economy."

Signet Solar Vice President of Business Development Keshav Prasad said his company wanted to use a proactive approach to bring solar energy to the state. He said Signet looked at several locations in New Mexico before settling on the Belen site, which is the company's first in North America. Signet has locations in Germany and India.

Construction of the plant will begin early next year near the north Belen freeway interchange and is expected to initially employ 200 people. Manufacturing jobs will range from production workers to engineers with a weighted average annual salary of $45,550. The current median household income in the city is $26,754, according to census data.

With the exception of schools and the BNSF Railway, the plant would match Walmart Supercenter with the third-highest number of employees at any one business in Belen.

"We're talking 600 jobs," said Claudette Riley, executive director of the Greater Belen Economic Development Corporation. "It's significant."

Riley said the city won't benefit from a gross receipts tax, but she said the new employees would buy materials and eat at local restaurants. She said the move will also help recruit additional businesses to the area. She mentioned companies such as Target and Applebee's Restaurant as possibilities.

Riley said the new jobs would help replace jobs lost by the Solo Cup Company, which will shut down its Rio Communities operation in March 2009.

"We're hoping for a ripple effect," Riley said. "There are endless opportunities for commercial and retail development."

Signet first heard about the site through Coast Range Investments President Jim Foster, who is also involved with the Rancho Cielo development. Foster has known Lahri since 1991.

Signet CEO Rajeeva Lahri also attended an event hosted by New Mexico Economic Development Partnership in October.

The partnership works with state and local officials to help recruit businesses to the state.

"We've wanted to expand to the Southwest," Prasad said. "We strongly believe there will be a huge market for (solar panels) in the U.S. long-term and that it will be a viable source of power for the future."

Prasad said the plant will recruit as many local people as possible once the building is ready for production.

Jim Wood, vice president of New Mexico Development Partners, said the move is a big step toward developing the state as an innovator in solar energy.

"It's huge," said Wood, who is also involved in the Rancho Cielo development. "They make the largest, most efficient solar panels in the world."

The company expects to employ 470 production workers, 50 engineers, 50 support staff members and 30 management positions. Wood said the company will probably advise the public about job inquiries in about 60 days.

Wood said the state still has to build a freeway interchange, which is expected to be completed by May. He said the company also wants to install a rail spur that would allow the company to unload its products and equipment directly from railroad cars.

According to Wood, an agreement with PNM is also in the works that would allow customers in Valencia County to receive the new alternative energy. Supplemental energy created by the plant could also be sold to PNM. He said all homes at Rancho Cielo will be solar-powered, but it's not known if it would be powered individually or through a grid.

Belen Mayor Ronnie Torres said he was pleased with the city's new opportunity in light of the dwindling economy.

"We're excited," Torres said. "It's one of the best things that could've happened to us."

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