Trina Solar Ltd. has entered into an agreement with Shenzhen S.C. New Energy Technology Corp. to acquire a majority stake in its wholly owned subsidiary, Hubei Hongyuan PV Science and Technology Co. Ltd., a specialized PV cell producer located in Xiantao, China.
Under the terms of the agreement, 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 plans to expand Hubei Hongyuan's existing production facilities to achieve a capacity of 420 MW by the middle of the year.
‘We continue to focus on executing our growth strategy of building an asset-light company and delivering increased returns on investment capital,’ says Jifan Gao, chairman and CEO of Trina Solar. ‘This acquisition will ensure Trina Solar is better positioned to benefit from growing global demand for our solar products.’
Subsequent to the transaction, Hubei Hongyuan will change its name to Hubei Trina Solar Co. Ltd.