Exclusive: SunPower picks California for new plant

SAN FRANCISCO (Reuters) - Solar panel maker SunPower Corp has picked California for its new U.S. manufacturing plant, a source familiar with the plan said on Tuesday.

The exact location, which is close to SunPower's headquarters in San Jose, and other details are expected to be announced soon, the source said.

SunPower did not immediately respond to calls seeking comment.

The company has scheduled a press conference on Thursday but did not give any details on the agenda, except to say it will be making a "significant announcement."

SunPower had said in December that California, Arizona and Florida were top contenders for the plant's location, and the company expects to make a decision by early 2010.

Mexico and Texas also were on the list previously.

The solar company, which builds high efficiency panels, plans to make up to a quarter of its solar panels in the United States beginning in about a year and is seeking federal funds for the site. SunPower also has a facility in Richmond, Calif.

A new SunPower plant in California would be a big win for Governor Arnold Schwarzenegger, who has seen the state lose manufacturing jobs, especially with the recent closure of the New United Motor Manufacturing Inc plant.

Popularly known as NUMMI, the plant in Fremont, Calif, was a joint venture between Toyota Motor Corp and General Motors. The plant, the only car assembly facility west of Texas, closed earlier this month costing the state 4,700 manufacturing jobs.

Schwarzenegger has been focusing on the growing green technology sector to create jobs in the state. Last month, he signed a bill that offered tax breaks for green technology manufacturing equipment in California. His administration also gave electric carmaker Tesla tax breaks to entice it to build its new electric sedan in California.

SunPower assembles solar panels in Mexico, the Philippines and China. It produces photovoltaic solar cells in the Philippines and is expected to begin production from a new cell plant in Malaysia this year.

SunPower's fiscal-year 2009 revenue was $1.52 billion and it expects revenue to grow to $2.0 billion to $2.25 billion in 2010.

(Reporting by Poornima Gupta; Editing by Gary Hill and Carol Bishopric)