The "green hole" sucks more companies down.

By: hcubed , 3:55 AM GMT on January 29, 2012

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Just seven months after California-based solar power company Amonix Inc. opened its largest manufacturing plant, in North Las Vegas, the company’s contractor has laid off nearly two-thirds of its workforce.

Flextronics Industrial, the Singapore solar panel manufacturer that partnered with Amonix to staff the new $18 million, 214,000-square-foot plant, laid off about 200 of its 300-plus employees Tuesday..."

"...Amonix received a $5.9 million investment tax credit through the American Reinvestment and Recovery Act in 2010, and another $12 million in private capital helped finance the plant..."

One...

Earlier this week, Stimulus beneficiary Evergreen Energy bit the dust.

"...Evergreen Energy Inc., a developer of alternative fuel products, filed for bankruptcy protection earlier this week, citing a lack of financing that the company said made it impossible to maintain operations.

The company listed assets of about $240 million and debt of $25 million in Chapter 7 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Chapter 7 proceedings let companies liquidate their assets while being protected from creditors.

Evergreen "remains unable to obtain additional financing and, given its current financial condition, there is substantial doubt that the company will be able to continue operations," Evergreen said in a Jan. 13 filing with the U.S. Securities and Exchange Commission..."

Two...

Then, Enter1, a manufacturer of batteries for electric vehicles and recipient of Stimulus largesse, filed for bankruptcy.

"...Jan. 27 (Bloomberg) -- Ener1 Inc., which owns a company that received a $118 million U.S. Energy Department grant to make electric-car batteries, filed for bankruptcy protection after defaulting on bond debt amid Asian competition.

The company listed assets of $73.9 million and debt of $90.5 million as of Dec. 31 in Chapter 11 papers filed today in U.S. Bankruptcy Court in Manhattan. Ener1 has been affected by competing battery developers in China and South Korea, "which generally have a lower cost manufacturing base" and lower labor and raw material costs, interim Chief Executive Officer Alex Sorokin said in the petition..."

Three...

So what do all these companies have in common? They all received gov't loan guarantees, and all give the same reason for their demise: an inability to match the labor and material costs of Asia.

The list of sinking "green" companies grows, and it's only gonna get worse - much worse...

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About hcubed

Living in Biloxi MS, have been here since '85 (first Hurricane was Elena).