Plant will shut after $58m in state aid


#1

Plant will shut after $58m in state aid
By Todd Wallack
Boston Globe Staff / January 12, 2011

Evergreen Solar Inc. will eliminate 800 jobs in Massachusetts and shut its new factory at the former military base in Devens, just two years after it opened the massive facility to great fanfare and with about $58 million in taxpayer subsidies.

The company announced yesterday that it will close the plant by the end of March, calling itself a victim of weak demand and competition from cheaper suppliers in China, where the government provides solar companies with generous subsidies.

Evergreen itself has a factory in Wuhan, China, built in collaboration with a Chinese company, Jiawei Solarchina Co. Ltd., and with money from a Chinese government investment fund.

There are companies whose “business plan” is to milk government subsidies and then magically disappear when the subsidy pastures elsewhere are greener (what an appropriate metaphor!) or it comes time to deliver … a viable product. This appears to be such a company!


#2

The Chinese will always be better and cheaper then us at producing products that can’t possibly pay for themselves within the expected lifetime of the product.


#3

Bye, bye green jobs, if they are not subsidized they just can’t make it in this world.

Where is the excuse that jobs move overseas because “they get tax breaks to do so” ?

More evidence of Obama’s VooDoo Economics.

.


#4

Imagine how much smaller our deficit in California would be if we stopped subsidizing all the “green” ideas that have no practical chance of ever being viable. We could also save a ton by dumping all the “incentives” we offer to individuals and businesses to “improve efficiency” in their appliances and entertainment equipment.

Combine those actions with allowing oil drilling everywhere in our State that has reserves (including our coasts) and the increased tax revenue and jobs might just mop up most of our financial mess.

I know, that makes way to much sense for Californians.


#5

This reminds me of those companies that come in under TIF districts and once they have to start paying taxes they leave

Tax increment financing - Wikipedia, the free encyclopedia