Evergreen Solar Q3 2009 Earnings Call Transcript

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2009-11-05 11:25:18.0

Tags: Facility, China, U.S. Bancorp Piper Jaffray Inc., Call Transcript, Earnings, Devens, Richard M. Feldt, Semiconductors, Hardware, Seeking Alpha, Evergreen Solar Inc.

Question-and-Answer Session

Operator

(Operator's Instructions) We'll go first to Jesse Pichel with Piper Jaffray.

Jesse Pichel - Piper Jaffray

Hi, good morning. I think you said that about a quarter of your sales were in the US and after you transfer production to China is there enough demand in the US with Devens full, and I'm just wondering why you would have to spend another $13 million in Devens as you indicated, wouldn’t you want to reduce your capacity there in Devens? And I have a followup.

Michael El-Hillow

Jesse, let me answer the second part of that question and Rick can answer the first part. The $13 million remaining is really final acceptance testing on equipment that is already installed. There's no intention currently of us putting additional dollars within the factory. Although we've said all along that we believe that the Devens facility in the US market will be very important to us and so it's very possible, as Rick said earlier, if demand is there we would probably put additional investments in this facility in the wafer and cell areas.

Jesse Pichel - Piper Jaffray

Is there enough demand in the US to keep that facility full just for the US?

Richard M. Feldt

Is there enough demand? Well remember, Jesse, we don't earmark the product from this facility for just the US market. We're hoping that there will be a demand for some made in US content, but the US market this past year was maybe about 300 megawatts, Devens is 160, so we won't have 50% market share in the US so we're really targeting worldwide demand and a piece of that demand is the US and we hope to satisfy that out of this facility, but there's probably not enough demand in the US right now to take 150-160 megawatts from Devens. No.

Jesse Pichel - Piper Jaffray

I think I'm really referring to the future, and if you thought that, why wouldn’t you close Devens?

Michael El-Hillow

Well, one of the things, Jesse — we'll just speak for Evergreen. We're really assuming that China is not going to be the only location that these things are made. I mean, our competition has talked about coming to the United States, that's number one. Number two, try as any other countries can, the United States is still the technology center of the world, and what we're leaving here, wafer and cell requires high technology, and so there's a place here no doubt. If ultimately China is the only place that panels are made, you're right. We'll close, VerSolar will close, SunPower will close, and everyone will close. We don't see that happening.

 

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