BP Solarex Becomes World's Largest PV Manufacturer

Until recently, Amoco and natural gas giant Enron each owned 50% of Solarex, one of the world’s largest manufacturers of photovoltaic (PV) modules. When British Petroleum (BP) purchased Amoco in December 1998 to form BP Amoco, however, the ownership of Solarex came into question. BP already had a large PV division and was pursuing different technologies than Solarex. Plus, insiders couldn’t see how BP and Enron could be partners, given their competition in other markets.

On April 6, BP Amoco announced the purchase of Enron’s 50% stake in Solarex for $45 million, creating the world’s largest PV manufacturer. In the process, BP Amoco has consolidated its PV divisions into a new subsidiary company, BP Solarex, which will be headquartered in Frederick, Maryland, where Solarex has been based. Solarex and BP Solar will be wholly owned subsidiaries of BP Solarex. This new company is projecting 1999 PV sales of roughly $150 million, representing about 30 megawatts of PV modules, a 20% share of the world total. BP Solarex will be headed by Harry Shimp, who was recently appointed president and chief executive of Solarex, and its chairman will be Steve Gates, executive vice president and chief of staff of BP Amoco.