SolarEdge deal with Flextronics can triple workforce

SolarEdge expects more than $40 million in sales of the systems.

Israeli start-up SolarEdge Technologies Ltd. has signed a contract with Flextronics Inc. (Nasdaq: FLEX) to manufacture SolarEdge's systems for improving the efficiency of photovoltaic panels at Flextronics' plant in Migdal Ha'Emek. The factory will produce products whose production cost is more than $20 million, which SolarEdge will pay Flextronics. SolarEdge said that it expects more than $40 million in sales of the systems.

SolarEdge's orders backlog for its Distributed Solar Power Harvesting and PV Monitoring Solution is expected to reach 50 megawatts by June. The systems will be installed in Israel, Germany, the US, and other countries.

SolarEdge claims that its technology can boost electricity output of photovoltaic arrays by up to 25% and provide superior monitoring and control, without increasing costs.

Flextronics is an electronics manufacturing services (EMS) provider.

SolarEdge co-founder and VP product strategy and business development Lior Handelsman said that the company expects to have at least $40 million in sales this year, and to at least double sales in 2011.

The importance of manufacturing the systems in Israel cannot be discounted. It will create local jobs and generate taxes.

Flextronics Israel co-general manager Reuven Shaibel said, "We're pleased to expand our solar energy business. We already have 100 people working on the production of SolarEdge's systems, and this number is expected to grow to 350 over the next two years."

SolarEdge raised $23 million in late 2008, a large figure for an Israeli cleantech company, especially so given the timing - the fourth quarter of 2008 marked the onset of the most difficult wave of theglobal economic crisis. The company had raised $11.7 million in a previous financing round. Major shareholders include General Electric Company (NYSE: GE) unit GE Energy Financial Services, US funds Walden International and Opus Venture Capital, and Israeli funds Genesis Partners and Vertex Venture Capital.

In the summer of 2009, SolarEdge announced that it would supply its technology to BP Group plc (NYSE; LSE: BP) unit BP Solar Ltd. Other customers are GE, Germany's Schott Solar AG, and HaWi Energitechnik AG, and Gehrlicher Solar AG, and Spain's Isofoton SA.

Published by Globes [online], Israel business news - - on March 3, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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