May 3 2010
STR Holdings, Inc. (NYSE: STRI) today announced it has commenced work on Phase II of its expansion plan at the Company’s solar encapsulant facility in Johor, Malaysia to service its growing customer base in Asia.
Phase II will double the size of the Company’s existing production and warehouse space in Malaysia, providing floor space for total capacity of up to 4.0 GW. It is scheduled for completion by the end of the first quarter of 2011.
Dennis L. Jilot, Chairman, President and Chief Executive Officer of STR Holdings, stated, “Commencement of Phase II of our expansion plans in Malaysia is a direct response to the growing global demand for STR’s solar encapsulants, especially from our Asia-based customers, and is a further step in the execution of our well-defined `One Plus China’ growth strategy. Located in one of the best shipping lanes in the world, Malaysia is an ideal regional hub, allowing us to provide customers with reduced shipping costs, quicker lead times and a dependable supply chain while also expanding STR’s raw material sourcing options.”
The Company expects to complete its Phase I expansion by the end of the second quarter of 2010, within the facility’s existing footprint. Capacity at the Malaysia facility is currently being increased from 1.0 GW to 2.0 GW. Upon completion, STR Solar will have overall global manufacturing capacity of 6.35 GW strategically located on three continents.
Robert S. Yorgensen, President - STR Solar added, “The addition and expansion of the Malaysian facility has been a tremendous benefit to STR. It enables us to enhance our already best-in-class service to our existing customers, while at the same time, improving our competitive position by helping us reach new customers in this rapidly growing geographical market.”