OptiSolar, the Bay Area company that had ambitions of bringing 1,000 jobs to the region, said Thursday it is suspending operations at its McClellan assembly plant as it struggles to find a buyer for its remaining facilities here and in Hayward.
A skeleton crew would remain at both plants, but company officials were pessimistic that the plants would be resuming operations anytime soon.
"We haven't given up, but we've come to the point when we have to reduce our operations costs," said spokesman Alan Bernheimer.
About two dozen workers will remain at OptiSolar's assembly plant at the former McClellan military base, after 58 people were laid off.
The company also laid off 142 employees from its Hayward plant.
In January, the solar panel maker laid off 105 of its 180 employees at McClellan.
Thursday's announcement was the latest blow for a company that began with high hopes in 2005, riding a wave of demand for clean-energy alternatives to environmentally harmful fossil fuels.
Business groups and elected officials, who offered tax rebates and other economic incentives, courted the company to locate its assembly plant in McClellan.
When it did, it was seen as a coup.
Last week, OptiSolar was honored by the Sacramento Area Commerce and Trade Organization during its "Salute to New Industry" luncheon.
"I think it's just a sign of the times. Many businesses are experiencing financial difficulties," said Tracey Schaal, SACTO's director of strategic marketing.
Sacramento County Supervisor Roger Dickinson, whose district includes the former military base, called OptiSolar's decision "an unfortunate setback."
"McClellan Park is a very diverse business location with over 250 tenants," Dickinson said. OptiSolar's troubles, he said, "won't have a significant impact on the health and viability of McClellan. It's more an illustration of the state of the economy."
The venture was projected to contribute $500 million to the area's economy over 25 years and generate $26 million in tax receipts for Sacramento County – despite $20 million in tax rebates the county agreed to give the company.
OptiSolar had hoped to eventually bring 1,000 jobs to McClellan.
But last fall, it scrapped plans to completely develop its facilities.
"We never fully got that facility fully started," Bernheimer said.
To raise capital, the company earlier this month sold off some of its key operations, including solar farms in San Luis Obispo.
"The problem wasn't demand. There is tremendous demand for our product," Bernheimer said. "We were unable to raise the capital to meet that demand."
In February, OptiSolar applied for a $300 million loan guarantee from the U.S. Department of Energy, but could not wait out the months it would take to process the application.
"We have run out of time," Bernheimer said.
Call The Bee's Bobby Caina Calvan, (916) 321-1067.
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