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Trina Solar joins with Shenzhen to expand China solar cell manufacturing and meet 420MW target

China’s Trina Solar acquires stake in Shenzhen subsidiary to expand solar cell production and reach 420MW by mid-2014

Solar cell
Trina Solar said the acquisition will give it more access to solar cell manufacturing at a low cost

Trina Solar has entered into an agreement with Chinese PV equipment maker Shenzhen S.C. New Energy Technology Corporation (Shenzhen) to expand its solar cell manufacturing capacity in China. The agreement aims to achieve a PV capacity of 420MW by mid-2014.

China’s Trina Solar has entered the agreement to acquire a majority stake in Shenzhen's wholly-owned subsidiary, Hubei Hongyuan PV Science and Technology (Hubei Hongyuan), a specialized solar cell producer in Xiantao, Hubei Province. Trina Solar will hold a 51 per cent stake in Hubei Hongyuan, with Shenzhen holding the remaining 49 per cent.

Trina Solar said the joint venture company will expand Hubei Hongyuan's existing PV production facilities and solid infrastructure to achieve an expected capacity of 420MW by mid-2014. This acquisition will also provide Trina Solar with greater access to solar cell manufacturing capacity and at a low capital cost, the company said.

"We are delighted to announce this exciting new acquisition and collaboration with Shenzhen SC,” Jifan Gao, Trina Solar CEO, said. “Shenzhen SC 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."

“This acquisition will ensure Trina Solar is better positioned to benefit from growing global demand for our solar products,” Gao added. “As an industry leader we remain deeply committed to supporting the healthy, long-term growth of China's solar industry."

Liujian Jiang, chairman of Shenzhen said the joint venture will combine Trina Solar's solid experience with Shenzhen's state-of-the-art equipment.

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 SC'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."

The news of Trina Solar expanding in China follows the company increasing its UK solar distributor network last week. The company formed a distribution agreement with Scottish firm CCL Components (CCL) to sell a range of its PV modules in the UK.