China Sunergy Co. Ltd, a specialized solar cell manufacturer based inNanjing, China, announced an agreement to acquire 100 percent of theshares of two related module manufacturers — CEEG (Shanghai) SolarScience & Technology Co. Ltd and CEEG (Nan Jing) New Energy Co. Ltd.
"These acquisitions enhance China Sunergy’s position in the downstreamphotovoltaic market and advance our initiative of developing into acomprehensive solution provider and providing value-added services tocustomers," commented Lu Tingxiu, Chairman of China Sunergy. "We lookforward to realizing these strategies by bringing polycrystalline module manufacturing in-house and strengthening our competitive advantageswithin the solar sector."
Lu explained: "Being verticallyintegrated will help to stabilize and increase margins in a possiblyvolatile environment, while representing a transformation towards asolution provider. We are reshaping the company from a single dimensionmanufacturing-oriented business into a platform with two pillars:technological innovation and a closer distribution channel to endcustomers. This acquisition will also positively impact China Sunergy’scustomer composition, as we can further focus on providing value-addedservices to system installers and integrators."
China Sunergy has a strong balance sheet and will be fully capable of funding theacquisitions, which have a total consideration of approximately US$47million. The consideration is payable by China Sunergy to China Electric Equipment Group and Sundex Holdings Limited in a series ofinstallments. The transactions have been
reviewed and approved byall three companies’ Boards of Directors.
CEEG (Shanghai) SolarScience & Technology and CEEG (NanJing) New Energy integrate theR&D, production, sales and servicing of solar modules, with totalannual production capacities of 150 MW and 70 MW, respectively, withcapacity forecasted to be 300 MW and 170 MW by the middle of the year.
Both companies were controlled by China Electric Equipment Group Co. Ltd, acompany controlled by Tingxiu Lu, China Sunergy’s chairman. Thesecompanies have a strong sales network within the United States, Germany, Spain, Italy, the Czech Republic and Southeast Asia.