First Solar has announced that Robert J. Gillette, a key executive at Honeywell International will become its new chief executive officer next month. According to the Wall Street Journal, the choice highlights both the growing clout of renewable energy companies as well as the importance of cost-cutting in the hyper-competitive solar industry. Gillette, 49, was the chief executive of Honeywell Aerospace, the industrial giant’s largest business group, and was thought by some industry observers to be a candidate for the top job one day. He was known as a persistent cost-cutter and a quick study and reduced the size of the unit’s work force, moving engineering jobs overseas. Driving down costs is critical for First Solar, which makes thin-film solar panels. Its panels are less expensive than and use less silicon than competitors’ photovoltaic panels, but generate less electricity. The cost of competing photovoltaic panels is falling, putting pressure on First Solar to keep cutting production costs. First Solar, with a market capitalization of $10 billion, is viewed as a financially strong competitor in the global solar marketplace. In the first six months of 2009, it reported a $345 million profit and had $429 million in cash at the end of June. However, it faces steep competition with Chinese solar makers driving a price war.
Gillette is Named First Solar Chief Executive
Gillette, 49, was the chief executive of Honeywell Aerospace, and thought by some industry observers to be a candidate for the top job.
September 4, 2009