Australia's only photovoltaic energy cell plant will cease operations following an announcement by BP Solar that it will close its Sydney-based manufacturing plant at the end of March 2009.
BP Solar said the move was part of the company's global drive to reduce the cost of renewable power.
The company is looking to focus its operations at larger scale plants in lowest cost manufacturing countries in order to drive down the cost of solar power for consumers.
Approximately 200 jobs will be lost from the manufacturing plant, with more local renewable energy jobs under threat.
The Greens and the Opposition have both claimed that the federal government should have done more to save the solar industry, saying if $6 billion was spent “propping up” the automotive industry, why couldn’t the same be done for the renewable energy sector?
BP has denied claims that the decision was related to federal government policy but has refused to receive any government assistance.
The company said no amount of aid or policies would have reversed the decision to move its operations to where it could be closer to its silicon suppliers and where it could ramp up production more cheaply.
The company's decision was greeted with disappointment by the federal government with Industry Minister Kim Carr saying the move was a let-down.
BP had received a commercial advantage through the government-sponsored $75 million Solar City project that subsidised rooftop solar energy panels.
Global CEO of BP Solar, Reyad Fezzani, said it was a "sad day" for the company and the employees at the Sydney plant.
He explained if the company was going to meet the challenge of reducing solar power costs to the point where it could compete on an equal footing with conventional electricity, BP needed to expand and demonstrate profitable returns.
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