Ascent to invest USD 129m in Chinese solar factory
Jun 23, 2014 - US firm Ascent Solar Technologies Inc (NASDAQ:ASTI) is required to make CNY 800 million (USD 128.5m/EUR 94.6m) in contributions as part of the first two phases of its planned solar module production joint venture in China.
The manufacturer of thin-film photovoltaic (PV) panels said in a press release today it will be contributing proprietary technology worth some CNY 480 million to the JV with China’s Suqian city. The sum is equivalent to 60% of the total amount Ascent is supposed to contribute, with the remaining 40% to be provided in the form of equipment or cash.
As announced in early January, Ascent and the city of Suqian, located in the eastern province of Jiangsu, have agreed for the US company to build a 100-MW plant there to manufacture thin-film copper indium gallium selenium (CIGS) PV modules. The Chinese party is required to invest CNY 200 million for project phases I and II. It will also provide the needed land in the Suqian economic and industrial development science park.
Ascent’s stake in the JV is expected to rise progressively up to 80% based on the ascribed value of its contribution. It is starting with a 25% interest.