China-based Suntech Power Holdings is closing its only solar panel-making plant in the USA to cut costs, two years after opening the facility.
Suntech opened the plant in Goodyear, Arizona in September 2010, saying that making panels in the USA would reduce time, costs and greenhouse gas emissions related to sourcing panels from overseas.
The plant, however, has been weighed down by US import tariffs on solar cells and aluminum frames, as well as a global panel oversupply.
According to the company, it is required to pay duties of 35.97% on solar cells imported from China and used in the plant.
The plant, originally expected to scale up to 120 megawatts (MW) per year, was scaled down to 15 MW in November 2012.
The closure, slated for 3rd April 2013, is expected to affect 43 employees.