Wuxi Suntech mulls acquisition of solar factory abroad - report

Jun 6, 2014 - Chinese firm Wuxi Suntech Power Co is mulling over the possibility of buying a foreign solar cell and module plant in an attempt to add between 500 MW and 1,000 MW of capacity, according to CEO Eric Luo.

The company, owned by Shunfeng Photovoltaic International Ltd (HKG:1165), is considering potential acquisitions in Southeast Asia as well as in North and South America, Luo said in an interview with Bloomberg published yesterday.

The CEO was quoted as saying that the time is good for the investment as demand is growing.

The US Department of Commerce on Tuesday imposed preliminary anti-subsidy duties of up to 35.21% on imports of China-made solar equipment, including photovoltaic (PV) panels assembled with cells from Taiwan. Suntech and five of its affiliated companies will be subject to the highest duty.

Through the purchase of a production facility outside of China, Suntech may be able to avoid these duties. However Luo pointed out, as cited by Bloomberg, that the company is not under pressure to manufacture abroad. Its intention is to be closer to its customers.

The US Department of Commerce is expected to make a final decision on the anti-subsidy case on August 18. The order for the duties, if approved, is to be issued on October 10.

Choose your newsletter by Renewables Now. Join for free!