Amonix: Low demand factored in NLV plant closure - FOX5 Vegas - KVVU
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The company that owns and operates a solar manufacturing plant in North Las Vegas said "lower than anticipated demand" was one of the factors involved in its closure.
In statement released Thursday, Amonix also said the "challenging solar energy equipment pricing environment" played a role in the shut down of its manufacturing plant in the Las Vegas Valley.
"We appreciate the efforts that the city of North Las Vegas and the state of Nevada made in working with us to make the facility successful," the statement read. "We looked at several options and were really hoping that we could keep the North Las Vegas manufacturing facility, but it is not economically possible for Amonix at this time."
The company said it will vacate its factory by next month.
Amonix is noted for receiving a $15.6 million federal grant approved in 2007 and a separate $5.9 million tax credit from the Treasury Department in 2010 under the stimulus law.
The company went on to attract criticism from politicians and economic development officials since its opening in May last year. The company had already eliminated 200 positions in January.
This is the complete statement released Thursday by Amonix:
Based on intense competition, the challenging solar energy equipment pricing environment and lower than anticipated demand for CPV (concentrated photovoltaic) solar energy in Nevada and other states in the U.S. southwest, Amonix has made the difficult decision to restructure the company and shut down its manufacturing center in North Las Vegas, NV.
We appreciate the efforts that the city of North Las Vegas and the state of Nevada made in working with us to make the facility successful. We looked at several options and were really hoping that we could keep the North Las Vegas manufacturing facility, but it is not economically possible for Amonix at this time.
As we work toward a successful long-term future, we are adjusting our business and operations plans to parallel changing market conditions.
The current plan is for Amonix to vacate the North Las Vegas factory by the first part of August, 2012.
The only federal incentive Amonix received for the North Las Vegas facility was a $5.9 million federal manufacturing incentive tax credit that was never utilized. Tax credits can only be used to offset taxable income, and Amonix has not realized taxable income to utilize the tax credits. Thus, those tax credits have not been claimed and have had no cost to U.S. taxpayers.
The Associated Press contributed to this story.
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