Spanish PV developer Isofotón has inked a memorandum of understanding (MoU) with the Yucatán state government in Mexico to develop a 150MW PV facility in the country.
The MoU was signed on 8 February by Ángel Luis Serrano, Isofotón’s President and the Governor of Yucatán, Rolando Zapata Bello, and the Environment and Economy Secretaries of the State of Yucatán.
Construction of the US$360 million project is due to begin on 1 January 2014 and will be constructed in six phases, each of which will involve the installation 25MW of PV capacity. The project is expected to take two years to complete and become operational.
The company confirmed to PV-Tech that it will provide all EPC services as well as the modules which will be produced in its production facility in Malaga, Spain.
Serrano described the MoU as “a key step in reinforcing our presence on the American continent, confirming once again the importance of international expansion as a key aspect in the progress of our business, as we are also one of the first manufacturers of modules worldwide to launch a project of this type in Mexico”.
Isofotón already operates in the Mexican market and has so far supplied more than 4,000 modules and its isotrackers for solar projects located in the municipality of Santa Rosalia and the state of Baja California Sur.
Its project will help oil-dependent Mexico to reach its target to install 693MW in of grid-connected PV between 2016 and 2019 — a figure that could extend to 1,336MW over that same period of time, according to projections released in July 2012 by the General Secretariat for Energy of the Federal Government of Mexico.
Latin America remains an important market for the company and has 1,500 MW of projects in the pipeline for the next 2 years. The company is also planning to construct a production facility in the region to better serve its customers in Latin America.
News of the MoU comes amid rumours that the company is in insolvency proceedings. However, Isofotón has confirmed that at present it is only in negotiations with its financial advisors in relation to the company’s debt and is not currently in insolvency proceedings.
In a statement sent to PV-Tech, the company said: “Isofotón is not insolvent. Isofoton informed the Málaga Court on February 4 that it will begin negotiations to refinance its debt. This does not affect the operation of its business nor Isofotón’s commitment to keep its business viable in Málaga. At the same time, Isofoton, with factories in Malaga (Spain) and Ohio (US) and projects in 5 continents including the recently signed Mexico project, is working on a plan that will align its Malaga staffing with the sector current demand and technology needs in order to maintain the stability and strength of the global company.”
It is understood that the Malaga factory is suffering from overcapacity issues. The restructuring plan is expected to affect 380 employees. During this time, the company stated that it would be “business as usual”.