Trina Solar has agreed to acquire a majority stake in the China-based specialised PV cell manufacturer Hubei Hongyuan PV Science and Technology, a subsidiary of Shenzhen S.C. New Energy Technology (Shenzhen S.C.).
As per the agreement signed with Shenzhen S.C., Trina Solar will acquire a 51% stake in Hubei Hongyuan while the remaining 49% stake will be held by Shenzhen S.C.
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The new joint venture (JV) firm will enable Hubei Hongyuan to expand its existing manufacturing facilities and infrastructure.
With the new transaction, Hubei Hongyuan is said to achieve an expected capacity of 420MW by the middle of 2014.
Trina Solar chairman and CEO Jifan Gao said Hubei Hongyuan has extensive experience in the production of better quality solar equipment and products.
"This acquisition will provide Trina Solar with the benefit of greater access to solar cell manufacturing capacity and at a low cost of capital," Gao added.
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By GlobalData"We continue to focus on executing our growth strategy of building an asset-light company and delivering increased returns on investment capital."
Shenzhen S.C. Chairman Liujian Jiang said, "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."
Following the transaction, Hubei Hongyuan will operate with its new corporate name, Hubei Trina Solar.
