China's Suntech to set up U.S. factory

LOS ANGELES (Reuters) - Chinese solar panel maker Suntech Power Holdings Co Ltd on Monday said it plans to establish a manufacturing facility in the United States, though it has yet to choose a location.

The company said it is exploring opportunities in several states as it seeks to expand its presence in the U.S. solar market. It plans to make a decision on the location in the next six months.

Suntech Chief Executive Zhenrong Shi said in a statement that strong growth in solar demand from U.S. utilities and federal incentives for solar power had helped lead to the company's decision to set up a U.S. production plant.

With Monday's announcement, Suntech joins a growing list of overseas renewable energy companies who are setting up production plants in the United States.

Earlier on Monday, Germany's Schott Solar unveiled a plant in New Mexico that will produce both solar thermal and photovoltaic solar components.

Also, just last week, German conglomerate Siemens AG said it would build a wind turbine equipment factory in Kansas, its second U.S. wind turbine facility.

(Reporting by Nichola Groom; Editing Bernard Orr)