Suntech will acquire the wafer manufacturing capacity for a total cash consideration of approximately $127m and will take operational control in the fourth quarter of 2010 with the acquisition expected to be immediately accretive to earnings.
Over the next one year, Suntech plans to expand internal wafer capacity to 25% to 50% of its total cell and module capacity to reduce wafer cost, and improve profitability and further leverage its global R&D resources to drive efficiency improvements in wafer manufacturing processes.
Suntech chairman and CEO Dr Zhengrong Shi said that the acquisition of wafer manufacturing capacity is the next step of the Suntech’s vertical integration, which will enable the company to balance dual goals of large scale and low cost.
“The proximity of the manufacturing facility, operating experience of the management team and ample capacity make this an ideal acquisition for Suntech,” Shi said.
