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BP Solar is set to start construction of a new 500MW photovoltaic solar module plant in Puertollano, Spain, in the second quarter of 2008, at a cost of approximately €100 million. Phase one of the project will see production of 300MW per year with phase two production topping 500MW should market conditions allow, the company said.

"This project is part of BP Solar's ambitious growth plans,” noted Emilio Camblor, Strategy Delivery Manager from BP Solar in Spain. “The new facility gives us additional capacity located in our key market - Europe - and it confirms our commitment to both the region and Spain as a competitive environment in which to do business."

The new plant will use state-of-the-art technology to manufacture photovoltaic solar modules and will generate 500-600 direct new jobs.

In March, BP Solar announced the expansion of its solar cell manufacturing with two new plants in Madrid, Spain and Bangalore, India that could boost annual capacity by 600MW.