Company's exit from Massachusetts inspires new state legislation, anger
Jan 27, 2011
Massachusetts-based Evergreen Solar recently said it would close its Devens, Mass., manufacturing facility and move all manufacturing to China “to better position the company to pursue its industry standard size wafer strategy and preserve the company’s liquidity.”
The plant had employed 800 Massachusetts residents and had received more than $58 million in incentives from Massachusetts to locate the plant there. Massachusetts State Senator James Eldridge (D) said Evergreen’s plant closure and move inspired him to file legislation that allows for “clawbacks” of such incentives when companies breech their agreements.
Eldridge supported Evergreen’s decision to locate in his district.
“I was excited at the prospect of over 800 jobs coming in to the district,” he said. “I was mistaken on that and believe there needs to be stricter scrutiny of companies.”
Compounding the issue, the company hired Donald Reilly as its new chief financial officer and offered him a six month severance package—even if fired. But Evergreen has not been upfront with its employees on what their severance packages will be
Eldridge said one employee told him “they believe the severance package is for eight weeks. They also think they’re eligible for an extra week of severance for each year they worked at the company,” he said. “But that hasn’t been confirmed.”
Eldridge said he filed clawback legislation that would allow Massachusetts to recover more of the incentives that it offered to businesses when they don’t live up to their commitments. He said that under the proposed legislation, “Job data would be public and put in a very easy format.” The size and number of tax breaks to any company would also be made public.
“[It’s not just] for renewable energy,” he said. “It’s about certain corporate practices.”
Among the incentives the state offered Evergreen Solar were a $15 million property tax break, a $7.5 million in state tax break, $2.7 million through a subsidized lease and $21 million in cash grants. Not to mention that the state spent $13 million in construction on roads and other infrastructure to support the plant.
At present, the state is attempting to recoup some of the grant money it issued to the company.
“That’s the process going on right now,” Eldridge said. “To see what the state can take back. They think it will be about $3 million.”
Pictured: Evergreen’s String Ribbon production line, courtesy of Evergreen Solar.
Your Comments
Isn't corparate welfare a wonderful thing...
Mass. Taxpayers gave these Failed BS. Dreamers $58MM. UPfront , and now they get to pay how many Tens of $MM.'$ USD.'s on the Backend for all of these Workers UNemployment Benefits and for how long of a time.!?
USA. has sat on its butt in Solar Energy for more than one decade too long because of the filthy rich oil/gas company lobbyists working to keep Solar Energy out. !
To think an American Manufacturing plant in solar energy can even begin to compete with the Chinese financially is absurdity and it is the whole problem here....
IMO.