LOS ANGELES, Jan 26 (Reuters) – BP Solar will boost its manufacturing deal with Jabil Circuit Inc (JBL.N) as it banks on increased solar demand in North America and Europe, the unit of BP Plc (BP.L) said on Tuesday.
Under the agreement, electronics company Jabil will assemble modules for BP Solar customers in North America at a plant in Chihuahua, Mexico.
The news follows similar plans to expand production capacity from solar power companies including Suntech Power Holdings Co Ltd (STP.N) and Trina Solar Ltd (TSL.N).
The industry is betting that the appetite for solar power products will rise in 2010 after a difficult 2009 when the credit crisis dried up financing for new projects and panel prices fell.
Under BP Solar's plan, Jabil will start production in Mexico in the second quarter with annual capacity of 45 megawatts. The company may increase capacity should demand grow.
The plans expand BP Solar's efforts to cut costs for its solar power panels and the manufacturing deal that the solar player struck with Jabil in October last year.
Jabil started a 45 MW assembly line in Poland for BP Solar, and has since upped that capacity to 90 MW. (Reporting by Laura Isensee, editing by Gerald E. McCormick)
