US racking business moves making to China
- Despite strong income growth in its domestic market, Quick Mount PV-- which was obtained by Netherlands-based Esdec last year-- is deserting its U.S. production to relocate overseas.
Residential solar racking business Quick Mount PV plans to close its factory in Walnut Creek, California at the end of the year to move the manufacturing procedure to China, according to sources near to the firm.
The offshoring plan, validated by Stijn Vos, CEO of Quick Mount's Netherlands-based parent business Esdec, will affect a Californian fab which utilizes around 40 individuals.
Quick Mount was acquired by Esdec last year in a roll-up of U.S. racking companies which additionally saw the Dutch organisation move for peers IronRidge and also EcoFasten, at undisclosed costs, to hoover up a reported 60% of the American residential racking market.
Business for Quick Mount seems to be going well. California-based equities expert Roth Capital Partners, in a recent market note, mentioned Quick Mount's earnings was expanding 70% year-over-year. Last year, the company doubled its annual production capacity to 1.2 GW.
So, why leave sunny California?
( No longer) made in the USA
Esdec chief executive Vos told pv magazine: "Quick Mount PV is currently part of Esdec's global supply chain, which offers the Esdec firms security and versatility. Products are sourced from throughout the globe, including the U.S.A. The Walnut Creek facility just carries out a section of the production actions for several of the QM [Quick Mount] items. Many manufacturing procedures were already outside the capacity of the Walnut Creek facility, needing an agreement manufacturing companion.
" Many of our current production partners are based in the U.S. and also North America, and we will certainly remain to resource from these partners, moving forward. But, as an international business, we are working hard to create an around the world expanded supply chain with multiple qualified suppliers for each element. Having companions in numerous geographical regions enables us to guarantee the integrity and continuity of supply, especially throughout vibrant times like these. The solid results over the first six months of 2020 validate that all business within [the] Esdec solar team carry out well as well as benefit from our reputable supply chain."
The business's web site specified, at the time of posting: "Since the starting of the firm in 2006, 'Made in the USA' has actually come to be the central policy behind Quick Mount PV's recurring efforts to bring work development, safety and security as well as sustainability to our atmosphere, our economic climate and also the energy sector." The website included: "Quick Mount PV takes excellent pride in production in America and also in the state of California as well as the work we produce right here are an integral part of our success."
The company was one of a small number of solar companies to make in the U.S.