BREAKING: Schott Solar Closing ABQ Plant

The company declined to cite specific reasons for the closing, but solar operations have been closing arount the country unable to compete with China in the manufacturing process.

Look in tomorrow’s Journal for a full story.

6:10 p.m. update from City Hall:

Schott Solar received some property-tax breaks from the city of Albuquerque as part of a 2008 industrial-revenue-bond deal, said Deirdre Firth, a division manager in the city’s Economic Development Department. Under the agreement, the plant’s closure means the company will have to repay 60 percent to 80 percent of the tax abatements it received, she said.

The city is still researching how much that will be.

John Garcia, Albuquerque’s director of economic development, said Schott has been a good partner and he expects the company to fulfill its obligations under city agreements.

The city will try to help the employees find other jobs and perhaps find another company to operate the plant, he said.

Firth said Schott had closed or plans to close plants in Germany, China and the Czech Republic. The local closure, then, isn’t the result of problems in New Mexico, officials said.

“This was a situation caused by global conditions,” Garcia said.

Albuquerque Mayor Richard Berry issued the following statement:

“We are extremely sorry to hear about the closure at Schott Solar. Our first concern is for the employees and their families, and we appreciate that Schott will be working with the community’s resource groups to help these folks make a transition into other jobs.

“We have had a very good relationship with Schott, and they have been extremely good at keeping the City informed about both their progress and their challenges. While this closure is not what we were hoping to hear, we know that this decision did not come lightly for them.  Global events and foreign trade practices outside of their control have had a devastating effect on this industry in recent years.  Solar module manufacturers all over the world have had to drastically cut back on their production, and close facilities.

“We will be reviewing the documents associated with the various incentives that the City provided, and working with the company on any related penalties that are due.”

6:27 p.m. update from City Hall:

Bernalillo County also weighed in with a statement saying it expects to be reimbursed $500,000. Here’s the county’s full statement:

Bernalillo County officials today expressed disappointment with the announcement that Schott Solar’s Albuquerque facility will close, and pledged to work with employees to help them find jobs and access community resources during their transition.

Bernalillo County’s Economic Development and Cultural Services Department is working with partner government agencies to address the announcement.

“Obviously we’re greatly disappointed with the news of this closure,” Economic Development and Cultural Services Director Mayling Armijo says. “Bernalillo County is committed to helping these employees find work and other support during this difficult time.”

In 2009, Bernalillo County approved a Local Economic Development Act grant in the amount of $500,000 to Schott Solar for the purpose of constructing and equipping two buildings totaling 200,000 square feet at Mesa del Sol within the county.

Company officials have assured Bernalillo County that the county’s incentives will be paid back as outlined by the Public Participation Agreement between the company and the county.

“Schott Solar has been a great partner and we appreciate their openness over the course of this project,” Armijo said. “Bernalillo County’s economic development team will continue to work hard to attract new projects and create jobs.”