Solar Turbines announces intention to build new facility in Žatec-Triangle

4 Mar. 2010 | CzechInvest, Caterpillar, Ústí Region | The proposed facility would be used to remanufacture core components for solar gas turbines in Europe, the Middle East and Africa.

United States-based Solar Turbines, a subsidiary of CaterpillarInc., has signed a letter of intent which could lead to the establishment of a high-tech repair center for its turbines in theŽatecTriangle zone. If the plans are finalized, the new facility would be Solar’s only facility in the region to provide remanufactured core components that will be used in the overhaul process of its gas turbines. Solar Turbines officially presented its plans to the Usti regional government today.

“Taking into account the current economic situation and the competition from other countries in Europe, we consider the fact that, together with CzechInvest, we were able to convince such an important company as Solar Turbines to announce its intentions to invest in the Triangle industrial zone to be a great success,” stresses Jana Vaňhová, governor of the Ústi region. “For quite a long time already, we have been working hard to have the industrial zone opened to smaller projects that would create jobs for people living in the area. First and foremost, I am very happy that the planned investment, when completed, could eventually create approximately 450 new skilled jobs. And we plan to further enlarge the range of jobs offered as other new investors eventually start to pour in.”

"With a large field population of turbines in the region, Solar Turbines has made a strategic decision to increase its global capacity for high-technology repairs supporting overhauls,” said Peter Taylor, Solar Turbines Vice President of Turbomachinery Products. “It makes sense to have a new facility in Europe to better serve customers in the region by reducing transportation time, which should allow Solar to speed delivery of overhauled turbines to customers.

"Solar Turbines is one of the most significant investments attracted to the Czech Republic by CzechInvest,” adds Alexandra Rudyšarová, acting CEO of CzechInvest. “Solar Turbines closely scrutinized investment conditions in several European countries and CzechInvest spent hundreds of hours to help the investor make the decision to sign a letter of intent with the Czech Republic.

Peter Taylor of Solar Turbines also praised the Ústíregional authority’s attitude towards the project. The region was quick to undertake all the necessary steps that would eventually lead to Solar Turbines’ establishment of its new facility in the Triangle Industrial zone. “The regional authority was very open towards the investor as it was not at all clear whether in the end the investor would sign the letter of intent with the Czech Republic or with another country,” says Vaňhová. “We didn’t find anywhere else outside the Czech Republic that would suit all our needs,” adds Peter Taylor.

"Solar Turbines is a technologically very demanding project that perfectly leverages and utilizes the well-known tradition of world-class Czech engineering,” says Stanislav Martinek, director of CzechInvest's Investment Division. “If the plans are finalized, Solar Turbines would also closely cooperate with schools in the Ústí region in training new Czech engineers and technicians.”

Currently, a few thousand Solar Turbines operate in the EMEA region. Each of these turbines needs to undergo an inspection and overhaul program after approximately 30,000 hours in operation. The company would conduct component-repair operations at the planned facility utilizing advanced inspection, precision machining and high-technology processes to restore parts. The plans currently anticipate that the new facility would gradually increase capacity over a period of years, reaching full capacity at 2020.

More about Solar Turbines

Solar Turbines Inc. is the world’s largest manufacturer of gas turbines within the 1 to 22 MW range. The largest part of its product portfolio consists of oil and gas installations, while many of its products are also used as backup energy sources and in local electricity production applications. The company was founded in 1927 and has been a subsidiary of the world-renowned company Caterpillar since 1981. At present, Solar Turbines employs over 6,000 people worldwide and looks after a fleet of more than 13,500 turbines installed in nearly one hundred countries.

More about Caterpillar

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With sales and revenues of $32.396billion in 2009, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.