This agreement is the first step in SunPower's long-term strategy to implement regional panel assembly for improved customer service and reduced costs. The company is also continuing to evaluate establishing localized manufacturing facilities in large solar markets in the U.S.

Separately, Jabil will collaborate with SunPower in the company's participation in the Solar America Initiative (SAI), a U.S. Department of Energy effort to accelerate the development of advanced solar energy technologies. SunPower has participated in the initiative since September 2007. SunPower and Jabil intend to evaluate establishing world-class panel and system manufacturing locations in the U.S., which would result in the creation of highly skilled jobs.

"This agreement provides SunPower with the flexibility to site manufacturing near the largest and fastest growing solar markets in North America, improving the efficiency of our supply chain," said Marty Neese, SunPower's chief operating officer. "Jabil's extensive experience in manufacturing and high-quality standards makes them an ideal partner for producing SunPower's solar panels, the most powerful solar technology on the planet."

"We are in the process of ramping production capacity to manufacture solar panels in Europe and North America for customers in those markets," said Brian Althaver, Jabil's vice president for strategic development. "This agreement gives us the opportunity to use our capabilities as a global manufacturer to provide a responsive, reliable and cost effective manufacturing solution in close proximity to solar markets."