Trina Solar has agreed to acquire a majority stake in PV cell producer Hubei Hongyuan PV Science and Technology, a wholly-owned subsidiary of Shenzhen S.C. New Energy Technology.

As per the agreement, Trina Solar will hold a 51% stake in Hubei Hongyuan located in Xiantao, Hubei Province, while Shenzhen S.C. will retain the remaining 49% stake.

Following the transaction, the joint venture company called as Hubei Trina Solar will expand Hubei Hongyuan’s existing production facilities to achieve an expected capacity of 420MW by mid-2014.

Trina Solar chairman and CEO Jifan Gao said the company has announced the new acquisition and collaboration with Shenzhen S.C.

"Shenzhen S.C. and Hubei Hongyuan have extensive and proven experience in manufacturing superior quality solar equipment and products, respectively.

"This acquisition will provide Trina Solar with the benefit of greater access to solar cell manufacturing capacity and at a low cost of capital," added Gao.