UPDATE 1-SMA Solar to open new plant in Colorado
* SMA to invest 15 million euros in facility
* Expects annual capacity to reach 1 gigawatt
* Production to start in mid-2010
LOS ANGELES, Oct 26 (Reuters) - SMA Solar Technology AG (S92G.DE) said on Monday it would open a factory in Colorado, putting about 15 million euros ($22 million) into the company's first production site outside Germany.
The Denver plant will make solar inverters, which convert direct current electricity from solar panels into alternating current for the electricity grid. It is expected to start production in the middle of 2010.
SMA Solar said the plant would have an annual capacity of 1 gigawatt, with the possibility of future expansion. They expect it to hire about 700 people in Denver.
"In the medium term, we expect the U.S. market to become the largest solar market globally," Chief Executive Gunther Cramer said in a statement. "With the new production in Denver, SMA will be able to reduce transportation and interim storage costs as well as currency exchange risks."
The company has rented the plant long-term with Denver real estate developer Etkin Johnson Group and Forest City Enterprises, and said it has an option for more space if needed, (Reporting by Laura Isensee; Editing by Toni Reinhold)
