MILLERSBURG - It was fitting that the sun was shining and it was 60 degrees Thursday at a groundbreaking ceremony for the Peak Sun Silicon Corporation's new production plant.

The company will produce polysilicon used to make chips for solar panels.

Company president John Schumacher said he had wanted to move to Oregon for several years - he had tired of traffic in southern California - and was attracted by the state's efforts to support alternative energy companies.

"I actually invented this process 33 years ago," Schumacher said during a ceremony at the Millersburg City Hall. When his son enrolled at the University of Oregon, Schumacher got serious about moving north.

"This has been a long time coming," Schumacher said. "We're ready to get things going.

Michael Grainey, director of the Oregon Department of Energy, said two other solar-oriented companies have opened plants near Portland. Peak Sun is the first to locate outside of the metro area.

Bob Warren of the Oregon Economic & Community Development Department said the state was "running a full court press" in recruiting alternative energy companies.

Warren said he was working with two other alternative energy companies that are considering properties in the mid-valley.

John Pascone of the Albany-Millersburg Economic Development Corp. and City Attorney Forrest Reid were instrumental in pulling the project together, officials said.

Mayor Clayton Wood told Gerry Lyman, vice president of administration for Peak Sun, that the property had once been owned by Owens Corning. The city purchased the 110 acres in 1986 with funds collected from franchise fees.

Peak Sun Silicon bought 8 acres of the property on Old Salem Road for $90,000 per acre. It has an option on another 90 acres at the same per-acre price, escalating to $100,000 per acre after two years.

Phase I construction will include a 5,000-square-foot chemical purification building; a 6,500-square-foot electronics-grade polysilicon processing building; and a 10,000-square-foot office building. The company will start with 50 employees who will earn an average of $50,000 per year.

Construction is estimated to cost about $29 million. The State Energy Loan Program approved a $14 million loan for the project. R.L. Reimers Co. will be the general contractor.