Trina Solar Limited, a global enterprise in photovoltaic ("PV") modules, solutions, and services, announced on February 14th that it has entered into an agreement with Shenzhen S.C. New Energy Technology Corporation, a solar equipment manufacturer, to acquire a majority stake in Shenzhen S.C.'s wholly-owned subsidiary, Hubei Hongyuan PV Science and Technology Co., Ltd., a specialized PV cell producer 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 420 MW 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. "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."
Subsequent to the transaction, Hubei Hongyuan will change its name to Hubei Trina Solar Co., Ltd.