Feb. 14, 2014 - Trina Solar Limited today announced that it has entered into an agreement with Shenzhen S.C. New Energy Technology Corporation ("Shenzhen S.C."), to acquire a majority stake in Shenzhen S.C.'s wholly-owned subsidiary, Hubei Hongyuan PV Science and Technology Co., Ltd., ("Hubei Hongyuan"), located in Xiantao, Hubei Province.
Trina Solar will hold a 51% stake in Hubei Hongyuan with the remaining 49% stake held by Shenzhen S.C.
The new joint venture company will expand Hubei Hongyuan's existing production facilities and solid infrastructure to achieve an expected capacity of 420MW by the middle of 2014.
"We are delighted to announce this exciting new acquisition and collaboration with Shenzhen S.C.," said Mr. Jifan Gao, chairman and CEO of Trina Solar. "Shenzhen S.C. and Hubei Hongyuan have extensive and proven experience in manufacturing superior quality solar equipment and products, respectively. This acquisition will provide Trina Solar with the benefit of greater access to solar cell manufacturing capacity and at a low cost of capital."
Mr. Gao added, "We continue to focus on executing our growth strategy of building an asset-light company and delivering increased returns on investment capital. This acquisition will ensure Trina Solar is better positioned to benefit from growing global demand for our solar products. As an industry leader we remain deeply committed to supporting the healthy, long-term growth of China's solar industry."
Mr. Liujian Jiang, chairman of Shenzhen S.C., 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. We look forward to delivering greater value to our customers and to contributing to the overall development of the solar market."
Subsequent to the transaction, Hubei Hongyuan will change its name to Hubei Trina Solar Co., Ltd.