Trina Solar Limited (NYSE:TSL) announced today it has acquired a majority stake in Hubei Hongyuan PV Science and Technology, a subsidiary of Shenzhen S.C. New Energy Technology Corporation, for an undisclosed amount. Hubei Hongyuan is a specialized PV cell producer located in Xiantao, Hubei Province.
The transaction will give Trina Solar a 51% stake in Hubei Hongyuan, with the remaining 49% to be held by Shenzhen S.C. In addition, Hubei Hongyuan will change its name to Hubei Trina Solar once the transaction is completed.
"Shenzhen S.C. and Hubei Hongyuan have extensive and proven experience in manufacturing superior quality solar equipment and products, respectively," noted the CEO and chairman of Trina Solar, Jifan Gao. "This acquisition will provide Trina Solar with the benefit of greater access to solar cell manufacturing capacity and at a low cost of capital."
Hubei Hongyuan is one of the world's leading manufacturers of photovoltaic solar cells and modules, as well as the research and development of additional PV products. It was founded in 2010 by its parent, Shenzhen S.C., and it currently has an annual capacity of 50 MW.
"We continue to focus on executing our growth strategy of building an asset-light company and delivering increased returns on investment capital," Gao continued in the press release. "This acquisition will ensure Trina Solar is better positioned to benefit from growing global demand for our solar products. ... [W]e remain deeply committed to supporting the healthy, long-term growth of China's solar industry."
The chairman of Shenzhen S.C., Liujian Jiang, was quoted as saying, "This transaction will enhance the presence of both companies within the solar sector by bringing together Trina Solar's solid experience and industry-leading products and services with Shenzhen S.C.'s state-of-the-art equipment."