BP Solar to dismantle addition

(Source: The Frederick News-Post)By Ed Waters Jr., The Frederick News-Post, Md.
Dec. 18--Next spring, motorists passing the BP Solar building on Solar Court will once again see workmen busy on the 140,000-square-foot addition to the original structure.

But this time, the crews will be dismantling the addition, not completing it.

Pete Resler, manager of external communications for BP Solar, said Thursday afternoon that the addition will be taken apart and the materials recycled.

"It was not an easy decision," he said, but the global company had not been able to find someone to buy or lease the addition.

The company broke ground for the addition in 2007, a $100 million project that would have added manufacturing equipment and hire about 70 additional workers. But the marketfor solar panels has become highly competitive and BP Solar had to cut back. After $30 million of the project was completed, BP Solar decided to halt construction and try to sell or lease the area.

Dismantling was the most cost-effective alternative, Resler said. He couldn't quote a cost, but said the contractor who will do the work will recycle the materials and the overall cost will be lower.

Resler expects the work to start in the first quarter of 2010. He did not know how long it would take to dismantle the addition. "There won't be wrecking balls there. It will be done carefully to recycle the materials."

The deconstruction won't affect operations at the BP Solar plant, now used for research and development and downsized manufacturing. In March, the company laid off 140 employees. While some of the initial phases of solar panel construction are still performed by the plant's 400 employees, the panels are completed in Poland, China and India.

Delegate Sue Hecht has been working to get $2 million in state stimulus funds and an $11 million federal tax credit for BP Solar. Hecht said Thursday the money would help the company move all of its research and development efforts worldwide to Frederick .

"The site where the addition is would become a solar array. The company would be able to do on-site testing," Hecht said.

The company would use the funds to develop a new line of solar panels. While initial construction of those panels would be done in Frederick , the final phase would be outsourced, Hecht said.

"I see that as a wonderful opportunity," Hecht said. A "first cut" in the federal review could come soon, she said, while the state decision wouldn't be until spring.

"If we are not able to move forward on this, the Frederick site will continue to become a 'cost' site for BP Solar, rather than a profit site," she said.

"I don't want to see something happen there as it did with Eastalco, when we lost 600 jobs that didn't come back."
But Frederick County Commissioner John L. Thompson Jr. considers use of taxpayer fundsfor businesses "corporate welfare." He opposes the "handouts" and notes a 2008 report from the Securities and Exchange Commission showing $367 billion in total revenue, and $228 billion in assets for BP PLC, parent company of the solar energy firm.

"Whether or not they tear down a building on their property, that is a business decision," Thompson said. "If BP Solar wants to build something there, let them go to the capital market, borrow the money and pay it back."

"Where are the teabaggers?" Thompson said, referring to activists opposing what they see as excessive federal spending and deficits. "The government doesn't have the money, especially the federal government. It is just running the presses to print money."

Thompson criticized elected officials who say they are against growing deficits, but have a different view when it concerns their own area. "That's inconsistent," he said.

Laurie Boyer, director of the county's economic development office, said Thursday she was disappointed that the expansion plan didn't move forward. "We are working with them on the site. We know the company is committed to Frederick and will retain employees."

Richard Griffin, the city's economic development director, noted the tough solar energy market, but was optimistic about the company. "We are incredibly bullish on BP Solar and hope it will become a great R&D center."

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