Suntech officials say a decision is expected within six months. "We believe in the outstanding long-term prospects of the solar energy market in the United States, and we will continue to invest in our ability to meet a substantial portion of that potential growth through in-market manufacturing,” says Zhengrong Shi, chief executive of Suntech, based in Wuxi in Jiangsu province,

He says several factors influenced the decision to set up a US production plant: dramatic growth in utility demand for large-scale wholesale solar projects, increasing number of states with incentive programs for customer-owned systems and recent federal government financing to promote solar power.

Taken together, Shi says the US solar industry will experience “steady, long-term growth in demand."

He says by locating manufacturing facilities close to its customers, Suntech can drastically lower logistics issues and costs, thereby reducing carbon emissions due to the transport of modules and increasing just-in-time delivery capabilities.