AstroPower Case
LEHIGH
University
Discussion Case TW-2001-2
AstroPower West, LLC1
Company Background
AstroPower, Inc. (www.astropower.com), the largest US-owned manufacturer of solar electric power products, began as a division of Astrosystems Inc., founded in 1983 as an outgrowth of semiconductor research at the University of Delaware. In 1989, the company was incorporated in
Delaware, and grew rapidly. In the several years up to 2001, Astropower was the fastest-growing major manufacturer of solar electric (photovoltaic, PV) cells, moving into the fifth position in world market share (Figure 1). The firm supplied products worldwide, and had regional offices in the US,
South Africa and Singapore.
Its investors were happy: in November 1999 the firm was named by Industry Week as one of the 25 most successful small manufacturers in the US. Then in December 2000 AstroPower was added to the S&P SmallCap 600, and in February 2001 was ranked 39th on Business Week’s Top 50 S&P Small
Cap Company list for one- and three-year stock performance. Its employees were happy too: by successfully competing against some of the world’s largest electronics and energy corporations,
Sharp, Siemens, BP, Sanyo, Mitsubishi and others, Astropower had created jobs for over 430 people, and plans were in place to for further expansion. AstroPower West, LLC is the newest business unit of the company, operating from Concord, California near San Francisco with the directive of developing residential, commercial, and utility business in the US.
Figure 1.
Source: Solarbuzz, Inc.
Leading-edge technology was a significant factor in this success. In May 2000 the firm introduced a new line of 8 inch solar cells and power modules, the largest and most powerful solar cells commercially available. The new AP-108 and APx-208 cells generated approximately twice the power of a typical 5" solar cells, currently the most widely utilized solar cell in the industry. Since many of the costs associated with the processing and
University
Discussion Case TW-2001-2
AstroPower West, LLC1
Company Background
AstroPower, Inc. (www.astropower.com), the largest US-owned manufacturer of solar electric power products, began as a division of Astrosystems Inc., founded in 1983 as an outgrowth of semiconductor research at the University of Delaware. In 1989, the company was incorporated in
Delaware, and grew rapidly. In the several years up to 2001, Astropower was the fastest-growing major manufacturer of solar electric (photovoltaic, PV) cells, moving into the fifth position in world market share (Figure 1). The firm supplied products worldwide, and had regional offices in the US,
South Africa and Singapore.
Its investors were happy: in November 1999 the firm was named by Industry Week as one of the 25 most successful small manufacturers in the US. Then in December 2000 AstroPower was added to the S&P SmallCap 600, and in February 2001 was ranked 39th on Business Week’s Top 50 S&P Small
Cap Company list for one- and three-year stock performance. Its employees were happy too: by successfully competing against some of the world’s largest electronics and energy corporations,
Sharp, Siemens, BP, Sanyo, Mitsubishi and others, Astropower had created jobs for over 430 people, and plans were in place to for further expansion. AstroPower West, LLC is the newest business unit of the company, operating from Concord, California near San Francisco with the directive of developing residential, commercial, and utility business in the US.
Figure 1.
Source: Solarbuzz, Inc.
Leading-edge technology was a significant factor in this success. In May 2000 the firm introduced a new line of 8 inch solar cells and power modules, the largest and most powerful solar cells commercially available. The new AP-108 and APx-208 cells generated approximately twice the power of a typical 5" solar cells, currently the most widely utilized solar cell in the industry. Since many of the costs associated with the processing and