Suntech Power, a producer of solar panels, said that it is in the process of acquiring 375MW of wafer manufacturing capacity in China.

The manufacturing capacity is being spun off from a subsidiary of Glory Silicon Technology Investments, in which Suntech holds an equity investment.

Suntech is buying the remaining 70% shares of the capacity for a total cash consideration of approximately $127m, which is the total consideration after an offset of approximately $80m of liabilities owed to Suntech.

Post the acquisition, Suntech will own 100% of the 375MW of wafer manufacturing capacity in China.

Suntech chairman and CEO Zhengrong Shi said that the acquisition of wafer manufacturing capacity is the next step of the company’s vertical integration.