Wuxi Suntech gears for US comeback through takeovers

Jul 8, 2014 - Chinese solar products maker Wuxi Suntech, recently saved from bankruptcy by local peer Shunfeng (HKG:1165), said on Monday it is set to regain its position on the US market through acquisitions and partnerships.

Suntech is looking for equity tie-ups and partners to expand its US network and sales, the company said in San Francisco on the eve of the seventh Intersolar North America trade show.

The company considers the time good for acquisitions as demand is growing, CEO Eric Luo said in an interview with Bloomberg in June. He sees potential targets in Southeast Asia and North and South America.

Wuxi Suntech used to be the main unit in China of US-listed Suntech Power Holdings (OTCMKTS:STPFQ), one of the world’s largest makers of solar panels. When the parent failed to make the principal payment on a USD-541-million (EUR 394m) bond In March 2013, Wuxi Suntech went insolvent and was later taken over by Shunfeng for CNY 3 billion (USD 483m/EUR 351m).

Suntech fell into trouble as times turned tough for the solar sector, burdened by market oversupply, price pressures and the import duties imposed by the US government on China-made solar cells. Suntech closed its US factory in Arizona and cancelled orders. Its shares fell drastically and it was delisted from the News York Stock Exchange (NYSE).

Wuxi Suntech's new parent Shunfeng is also gearing up for acquisitions. It aims to become a fully-integrated solar energy enterprise and intends to acquire a solar park operator in Europe, a US developer of power storage technology for lithium-battery and grow its stake in a Chinese hydrogen power storage and generation business, the company said in June.

(CNY 1 = USD 0.161/EUR 0.119)

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