SolarEdge Builds a Production Plant in Israel
7 March, 2018
The new 10,000 square meters production facility in the Upper Galilea is expected to begin production in 2019. Today, the company outsources its production to Jabil, Celestica and Flex
SolarEdge is building a production facility in the Upper Galilea, inside the Ziporit Industrial Park near Nazareth. Techtime has learned that the company asked suppliers to bring manufacturing machines in the second half of 1018, probably to begin production in the beginning of 2019.
The company declined to give information, but some details were found on its Annual Report, published on February 20, 2018. The company revealed that in July 2017, it executed a long term lease agreement for 10,000 square meters in Israel, “intended for the establishment of a manufacturing facility for the production of product prototypes, manufacturing and the development of proprietary manufacturing and testing equipment.”
Fast growing company
The amount of investment is is not clear yet, but SolarEdge made heavy commitments to purchase production machines. As of December 31, 2017, the Company had contractual obligations for capital expenditures totaling approximately $23,263. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing. Not necessarily all these commitments are related to the new factory.
SolarEdge provides PV inverters, power optimizers, and module-level monitoring services for solar PV systems, ranging from residential solar installations to commercial and small utility-scale solar installations. It is one of the fastest growing high tech companies in Israel, with Full Year 2017 revenues of $607.0 million, up 24% from the prior year, and net income of $84.2 million (up 33%).
The Building of its own production capacity is an interesting move from a company that was relying on outsourcing. “We have outsourcing agreements with three of the world’s leading global electronics manufacturing service providers, Jabil Circuit, Inc., Celestica LLC and Flextronics Industrial Ltd. It gives us added flexibility to manufacture certain products in China, closer to target markets in Asia and the North American west coast as well as other products in Romania and Hungary, closer to target markets in Europe and the North American east coast.”
In order to improve its efficiency and product’s reliability, SolarEdge develops and builds some of its automated assembly lines, automated machinery for subassembly of certain components used in its products and testing equipment. “These assembly lines, currently operating in all of our manufacturing facilities enable the manufacturing of more than 4,000 optimizers per machine per day.”
SolarEdge website: www.solaredge.com
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