Electronics Production | August 16, 2011
Jabil Poland to lose manufacturing contract
Day4 Energy has decided to permanently cease its outsourced manufacturing operations in Poland. The manufacturing partner here was EMS-provider Jabil
"Since the end of 1Q/2011 we have expanded the reach of our technology and brand platform by securing license agreements with PV Products GmbH in Austria and Solar Modules Netherlands (SMN) in Holland. With PVP and SMN joining our first licensee Gebäude-Solarsysteme GmbH (GSS) we were able to reach a contracted level of 75 MW of annualized manufacturing capacity licensed to produce PV modules based on Day4 DNA technology and brand platform," said George Rubin, President of Day4 Energy. To support this licensing strategy, the management decided - in July 2011 - to cease production with Jabil in Poland and commenced negotiations on terminating the manufacturing contract. "We have estimated our incremental cost to exit our manufacturing arrangement in Poland to be USD 1.3 million reflecting a notice period to cover the plant's charges."