GCL-Poly changes mind on sale of wafer factories

Dec 19, 2014 - GCL-Poly Energy Holdings Ltd (HKG:3800), which recently unveiled plans to sell certain wafer and ingot factories, said today it has decided to retain the wafer production plants in order to maintain its market position.

The Chinese solar equipment maker mentioned it has reached a consensus with the potential buyers and expects to cancel the existing deals as soon as possible.

At the very end of November, GCL-Poly announced it was to shed seven wafer production facilities and two ingot factories in China to firms linked to troubled photovoltaics (PVs) maker Shanghai Chaori Solar Energy Science & Technology (SHE:002506). The company pointed out at the time that these transactions, worth a total of CNY-8-billion (USD 1.29bn/EUR 1bn), would help it manage its high level of indebtedness, restore financial flexibility and keep its leadership position on the solar market.

However, GCL-Poly has now determined that the divestitures are not in the best interest of the company and its stockholders, “having considered all the relevant circumstances.” The idea is to maintain the firm’s position as a leading polysilicon and wafer manufacturer, it added.

In the first half of 2014, the target assets generated revenues of HKD 10.86 billion (USD 1.4bn/EUR 1.14bn), which was equal to 63% of GCL-Poly’s total revenue for the period.

(CNY 1.0 = USD 0.161/EUR 0.131)

(HKD 1.0 = USD 0.129/EUR 0.105)

Choose your newsletter by Renewables Now. Join for free!