SoftBank, Golden Concord plan 4-GW PV manufacturing JV in India

China's Golden Concord Holdings Ltd and Japan's SoftBank Group Corp (TYO:9984) have agreed to form a 4-GW solar manufacturing joint venture in India.

According to a stock exchange statement by GCL-Poly Energy Holdings Ltd (HKG:3800) last week, Golden Concord has signed a memorandum of understanding (MoU) with SoftBank Vision Fund LP, acting via its manager SB Investment Advisers (UK) Ltd, which is a subsidiary of SoftBank. The non-binding agreement calls for Golden Concord and SoftBank to set up an integrated facility for the production of photovoltaic (PV) ingots, wafers, cells and modules in the state of Andhra Pradesh.

The JV is expected to have a cumulative capacity of 4 GW, to be implemented in two phases of 2 GW each. About USD 930 million (EUR 754m) will be invested in the business, with the partners yet to decide how to fund the investment and whether to use debt, equity or a combination of the two. SoftBank will own 60% of the JV, and Golden Concord will hold 40%.

Golden Concord will provide the relevant technology, while SoftBank will help the JV secure land and regulatory approvals, as well as potential subsidies.

The partners also plan to be involved in solar power development in India.

(USD 1 = EUR 0.810)

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