Quantum Fuel Systems Technologies Worldwide Inc., a maker of parts for hybrid cars, is turning its attention to a proposed solar panel plant in Irvine.
The Irvine-based company last month received a letter of intent for a $20 million in-vestment from Norway’s New Energy Systems LLC, a developer of alternative energy projects.
New Energy is taking a 34% stake in the company’s Quantum Solar Energy Inc. unit and appointing two directors to the venture.
Quantum plans to use the money to start a solar panel plant at its Irvine headquarters.
In a related move, Quantum said last month it is buying a Canadian sol-ar and wind power generation company, Schneider Power Inc., for $20 million.
Quantum is looking to provide panels to solar energy sites Schneider is looking to develop.
Plant
The company’s solar plant could open next year at its 90,000-square-foot headquarters building on 5.2 acres.
Quantum, which is publicly traded with a recent market value of about $120 million, also has three buildings in Lake Forest totaling 155,000 square feet.
The proposed Irvine factory could double Quantum’s workforce, which now stands at about 120 people.
A few of the positions for the factory would be technical with the majority related to assembly, Quantum Chief Executive Alan Niedzwiecki said.
The company considered putting a plant elsewhere where costs are cheaper but settled on Irvine for access to potential customers, he said.
“We factored in the cost of shipping for the panels,” Niedzwiecki said. “Lots of local schools and municipalities also prefer locally made things.”
Quantum’s main business is making power trains for hydrogen vehicles for the military and automakers. The company makes power trains for Irvine’s Fisker Automotive Inc., which is set to start making a plug-in electric luxury sedan next year.
“We see solar as the ideal way for owners of the hybrid cars to recharge their batteries,” Niedzwiecki said.
Quantum also wants to sell panels to consumers, businesses, schools and other governments.
High Hopes
Niedzwiecki said he has big hopes for the solar panel business. It could put Quantum on track for $150 million in sales a year, he said.
For the 12 months through April, analysts project Quantum to have $50 million in sales.
“This is a new direction for the company,” Niedzwiecki said.
The move into solar is a gamble for a company that’s seen some rocky times.
Quantum hasn’t reported financial results since early 2009. The company faces the prospect of being delisted from the Nasdaq exchange for not meeting minimum financial requirements.
Niedzwiecki said it could be another 12 months before the company breaks even. Quantum posted a loss of $62 million for the nine months through January, the last time it reported results.
The company bought Toronto-based Schneid-er Power using proceeds from last year’s sale of Tecstar Automotive Group, a former subsidiary that had seen lagging sales to major customer General Motors Corp.
In September, Quantum raised more than $12 million in a private stock sale.
Quantum’s other push is Fisker’s luxury hybrid cars. The company supplies the Q-Drive power train and other parts for the cars.
Niedzwiecki is one of the creators of Irvine’s Fisker Automotive, along with Henrik Fisker and Bernhard Koehler.
The six-and-a-half year deal with Fisker could bring Quantum several hundred million dollars in sales, according to Niedzwiecki.
Quantum also makes power trains for hydrogen vehicles for other automakers, such as Japan’s Toyota Motor Corp and Suzuki Motor Corp.
