Deltro Barbados = Suntech Arizona

Compiled by Due Diligence

The Deltro name first surfaced in an October 25, 2015 story in Barbados Today which quoted Mia Motley saying “Any day now this Government will have another government entity sign yet another power purchase agreement with yet another Canadian outfit, called Deltro Electronic Inc, to provide power to a new utility company for 20 years in the first instance, and 80 years after that, a maximum of 20mw by way of photovoltaic energy,”

Subsequent background checking by BU contributors have disclosed that the Deltro Group is a small to mid-sized electrical contractor based in Mississauga, Ontario, Canada. The character of the principals of Deltro Group, David Del Mastro and Dean Del Mastro is questionable. Apart from the court documents concerning David Del Mastro’s divorce, background checking of Deltro and David and Dean Del Mastro disclosed no  financial information.

On November 11, 2015 Deltro Group issued the following Press Release at DELTRO GROUP TO CREATE OVER 500 JOBS IN BARBADOS.

November 11, 2015 – The Deltro Group is pleased to announce the creation of a new Solar Manufacturing Facility in St. Michael. Featuring a state-of-the-art Meyer Burger manufacturing line, which has already arrived at the Bridgetown Port, this new manufacturing plant will support residential and industrial solar development in Barbados and beyond.

While admitting that other locations were studied and closely considered, David Del Mastro, President of the Deltro Group of Companies stated, “Ultimately, we determined that locating in Barbados was the right choice. This new facility has the potential to dramatically grow the green energy footprint throughout the Caribbean and the Americas, while creating good jobs and new opportunities; I am really excited about it.”

In welcoming the Deltro Group on behalf of the Barbadian Government, Minister of Industry, International Business, Commerce and Small Business Development, Donville Inniss has lauded the decision to make Barbados its base, stating, “This level of investment shows the faith of Deltro in our economy and is in sync with Government’s vision to develop a renewable energy sector, of which manufacturing is a viable part.”

A retrofit and upgrade of the manufacturing facility is presently being designed with the architectural work being completed by P.B. Simpsons Architects Ltd., while M.A.G. Construction Inc. has been awarded the renovation contract. Both local companies are based in St. Michael.

“M.A.G. will be hiring a minimum of 80 workers to complete the renovations.  It is obvious that this significant investment in Barbados by the Deltro Group will have an immediate positive impact on our country; the timing could not be better,” stated President, Mark Griffith. “The fact that a new green energy manufacturer is investing and creating hundreds of highly sought-after positions will be welcomed by us all.”

Over the next decade, renewable energy is expected to be one of the fastest-growing global industries. Deltro is an experienced and recognized leader in solar energy engineering, procurement, design and construction. As part of this investment, Deltro Group will headquarter Deltro Solar, Deltro H2O, Deltro Energy, Deltro Generasol and Deltro Caribbean in Barbados. The Deltro Group expects to significantly increase value-added exports from Barbados by combining industry-leading technology and competitive pricing with a proven track record as a distinguished industry leader.

A December 17, 2015, report titled The heat is on stated:

By early next year DELTRO Group is expected to set up a $26 million solar manufacturing plant on the island,

DELTRO President David Del Mastro said equipment for the project had already been purchased and awaiting clearance from the Bridgetown Port. He added that a location had been identified for the facility, which is expected to hire more than 160 people once in full operation.

“We expect that to happen early 2016 with construction and the line operating by March to April. That would be our test bed and once we have the line tuned up, full employment by June at the latest,” said the company president.”

An August 5, 2016 another story titled Deltro Executive fires back in Barbados Today stated the following:

Deltro Group Ltd is a Barbados-based company as are its affiliates Deltro Solar and Deltro Caribbean Corporation, complete with Barbados-based bank accounts. Deltro will employ Barbadians, hundreds of them in fact, and will be investing hundreds of millions of dollars into the Barbados economy.

Deltro is not seeking to take anything away from Barbados; in fact quite the opposite is true. Deltro is building an export focused business that will sells its goods internationally for US dollars and pay all of its workers and expenses in Barbados dollars. All of which is expansionary for the Barbados economy, benefits Barbadians and supports the foreign exchange system employed by the Central Bank in Barbados,”he added.

DD wonders – How did a $26 million solar manufacturing plant become investing hundreds of millions of dollars into the Barbados economy.


It’s Time August 12, 2016 at 10:58 AM #
/.comment-head 40 Million dollars in which currency?
Motion for Asset Sale Approved for Suntech America, Inc.

May 11 15
The US Bankruptcy Court gave an order approving the sale of certain assets of Suntech America, Inc. on May 11, 2015. The debtor has been authorized to sell certain assets to Deltro Electric Ltd. pursuant to the asset purchase agreement dated April 24, 2015, for a purchase price of $0.55 million in cash. The debtor’s assets include those assets located at Suite F of Goodyear One building and used in, or relating to the business of production of solar panels. The offer of Deltro Electric is the highest and best offer received for the assets. On April 8, 2015, Deltro Electric wired $0.06 million to the debtor as a good faith deposit. Closing will occur no later than the later of May 15, 2015 or the date which is the first business day after the sale hearing. Michael Mazzuca of Gibson & Barnes LLP acted as legal advisor for Deltro Electric.

It’s Time August 12, 2016 at 11:02 AM #
/.comment-head October 15, 2015, Phoenix, AZ –
MEI Rigging & Crating performed a turnkey factory relocation for a solar panel manufacturing equipment company, destined for Barbados. Deltro Electric LTE, a solar contractor, needed help with a huge project to move their entire solar panel production factory from their Arizona location to Barbados to create solar panels for a solar energy farm. All this needed to be accomplished in 6 weeks – a project that would normally take 6 months to complete.
The solar panel factory relocation is part of an objective is to create solar energy farm as part of a national energy policy for Barbados, helping create national energy security for this sovereign island country in the East Caribbean.
MEI Rigging and Crating’s Arizona team executed the rigging teardown and disassembly of the solar line and other equipment, crated the production line and blocked and and braced it on an ocean container headed for Barbados. The Deltro Electric job used a total of 30 high cube containers (tall shipping containers) and 4 flatbed trucks to transport the disassembled solar module manufacturing line, along with everything else in the building. There were a total 55 skids and 15 crates used to package up all the equipment from the line. The largest size crate was for the Framing Station with dimensions of 268 x 147 x 79. The heaviest crate was the Laminator which weighed in at 32,000lbs (crate & tool) and measured 221 x 137 x 118.
“I feel a lot of pride in my work, especially with this project”, says Jake Louk, Project Manager for the Phoenix division of MEI Rigging & Crating, “tackling such a large move is a challenge, and being able deliver this job on such short schedule, reducing time to shipment by 80% really shows the best of the project management and execution abilities of our team”

Very interesting.

I was curious about circumstances under which Deltro Electric Ltd bought certain assets from Suntech America Inc, in The US Bankruptcy Court in May 2015, and having those assets, comprising the manufacturing equipment relating to production of a solar panels, shipped to Barbados.

In a nutshell, Suntech America and Suntech Arizona were subsidiaries (via a BVI holdco) of Suntech Power Holdings Co., Ltd. (Chinese: 尚德; pinyin: Shàngdé) once the largest Chinese producer of solar panels, which went bankrupt in 2013.

Deltro bought the assets of a defunct manufacturing/assembly plant which Suntech could not operate profitably in America, had them shipped to Barbados where they say they will be investing hundreds of millions of dollars into the Barbados economy.

In October 2010, Suntech America opened plant in Goodyear, Arizona with 25 MW of annual production capacity and 75 new American employees. In March 2013 Suntech closed the plant in Goodyear, Arizona.

In May 2015 Deltro purchased the assets of the the Suntech, Arizona plant for US$550,000.00 and had them shipped to Barbados to set up a plant in Barbados.

So how did Deltro, a mid sized Canadian electrical contractor, finance the US$550,000.00 purchase?

There can be no doubt that Deltro had an agreement with the Government of Barbados to establish a solar panel manufacturing plant, complete with incentives/concessions, property/building for the manufacturing plant prior to purchasing the Suntech Arizona plant equipment, or it could not have arranged the financing.

When did the Deltro/GOB discussion/negotiations begin?

When did GOB sign agreement with Deltro?

Why have the details of the Deltro/GOB agreement not be made public?

What incentives did GOB extend to Deltro/Del Mastros.

What incentives did Deltro/Del Mastros extend to GOB Ministers

How could GOB enter into the agreement without T&CP approval and EIA?

How can Deltro expect to be able to manufacture solar panels in Barbados to compete with the giant solar panel manufacturers in China and elsewhere in the world.

This has all the appearances of making Cahill look like nickel and dime stuff.

To paraphrase the title of the Paulson Institute’s case study (see below) on the rise and fall of Suntech, the title of the story about Deltro/Barbados will be titled “A Canadian Solar Company’s Fleeting Run in the Barbados Sun”

The following is a brief chronology from a case study on the rise and fall of Suntech at:

A Chinese Solar Company’s Fleeting Run in the Arizona Sun

2000  Germany passes generous solar incentives to encourage utilities to buy electricity generated from private green power generators.

2001  Dr. Shi Zhengrong returns to China from Australia to found Suntech Power Holdings, with a $6 million initial investment from the Wuxi City government.

2002  Suntech’s first 10 megawatt (MW) photovoltaic cell production line begins operation in Wuxi.

2004  Shi ousts a Wuxi government appointed chairman and assumes dual position of Chief Executive Officer (CEO) and Chairman of the Board.

2005  April: At Shi’s urging, local government funds and state enterprises sell their stakes in Suntech to private investors.
December: Suntech succeeds in its initial public offering and raises $400 million, as its shares close at $20.35 on the first day of trading on the New York Stock Exchange.

2006  January: The US federal Energy Policy Act of 2005, signed into law by President George W. Bush, takes effect. Among its provisions is a 30 percent investment tax credit for commercial and residential solar energy systems.

July: Suntech America is incorporated in San Francisco, California.
November: Arizona adopts a Renewable Energy Standard and Tariff, mandating that regulated utilities in Arizona generate 15 percent of all electricity from renewable sources by 2025.

December: Representatives from Arizona State University meet with Suntech’s CEO and Chief Operating Officer at its headquarters in Wuxi.

2007  Shi travels to Arizona and meets with then-Governor Janet Napolitano and Bill Harris, CEO of the Arizona Science Foundation. Shi is the guest of honor at a dinner attended by a number of industry leaders.

2008  Lehman Brothers collapses, triggering a series of events that leads to the worst financial crisis since the Great Depression. Weak consumer confidence, diminished consumer and business spending, and tight credit contribute to a marked slowdown in demand for products that require large initial capital expenditures, including solar. Government incentive cuts in Europe also contribute to weakening solar demand.

2009  February: US Congress passes the American Recovery and Reinvestment Act, setting aside $6 billion for Department of Energy loan guarantees for solar companies and projects. A “Buy American” mandate is included in the bill.

May: Suntech announces its intention to open a manufacturing facility in the United States and begins a site selection process.
September: Suntech announces that it has selected Arizona as the site of its North American manufacturing facility.

2010  April: Department of Commerce (DOC) opens an investigation into a complaint brought by the United Steelworkers union against Chinese aluminum extrusion exporters.

September: US government announces its preliminary decision that China unfairly subsidizes factories that produce aluminum extrusion products, also used in solar panels, and proposes countervailing (CVD) and antidumping (AD) duties.

October: Suntech America opens plant in Goodyear, Arizona with 25 MW of annual production capacity and 75 new American employees.

2011  A coalition of US solar manufacturers brings trade case against China, alleging that the Chinese government is unfairly subsidizing Chinese solar manufacturers, thus inflicting material harm on US industry.

2012  May: DOC finds that the Chinese government is unfairly subsidizing solar manufacturers to support exports and imposes AD and CVD duties on Chinese solar exports.

July: Suntech announces that it is the victim of a $690 million fraud related to a joint venture agreement in Europe.

2013  Suntech closes its Arizona factory at the beginning of March. By the end of the month, the company defaults on a bond payment and is declared bankrupt.

Below are other links re Suntech.

Why a Chinese Firm’s Solar-Panel Factory in Arizona Failed

In petitions before the Delaware bankruptcy court, both Suntech America Inc. and Suntech Arizona Inc. sought Chapter 11 protection listing more than $200 million in debt between the two of them, all of it unsecured and much of it from intercompany claims from firms within the Suntech family of companies.

Suntech was the Icarus of the solar panel industry, with production that soared year after year on heavy investment, as Western investors bought up its New York-traded shares and its international debt issues. Part of a massive Chinese government effort to dominate renewable energy industries, Suntech grew to 10,000 employees in its hometown of Wuxi and even set up a small factory in Arizona to do further assembly of panels there.

Suntech Arizona is also directly owned by Suntech ES and is based in Goodyear, Arizona. Suntech Arizona owns no real property and leases a manufacturing facility in Goodyear (the “Goodyear Facility”). Prior to ceasing production in April 2013, the Goodyear Facility manufactured PV modules that it sold to Suntech America. While Suntech Arizona does not own the Goodyear Facility, it does own the manufacturing equipment housed at such facility. Other than such manufacturing equipment, Suntech Arizona owns no other significant tangible assets.

Suntech Power – Wikipedia, the free encyclopedia

Suntech Power Holdings Co., Ltd. (Chinese: 尚德; pinyin: Shàngdé) is a Chinese producer of solar panels, with 2,000MW of annual production capacity by the end of…