China Sunergy Announces Acquisition of Two Solar Module Manufacturers
PR Newswire
NANJING, China, March 15
NANJING, China, March 15 /PRNewswire-Asia/ -- China Sunergy Co., Ltd.
("China Sunergy") (Nasdaq: CSUN), a specialized solar cell manufacturer based
in Nanjing, China, announced today an agreement to acquire 100% of the shares
of two related module manufacturers, CEEG (Shanghai) Solar Science &
Technology Co., Ltd and CEEG (Nan Jing) New Energy Co., Ltd.
"These acquisitions enhance China Sunergy's position in the downstream
photovoltaic market and advance our initiative of developing into a
comprehensive solution provider and providing value-added services to
customers," commented Mr. Lu Tingxiu, Chairman of China Sunergy. "We look
forward to realizing these strategies by bringing polycrystalline module
manufacturing in-house and strengthening our competitive advantages within the
solar sector."
Chairman Lu further explained: "Being vertically integrated will help to
stabilize and increase margins in a possibly volatile environment, while
representing a transformation towards a solution provider. We are reshaping
the company from a single dimension manufacturing-oriented business into a
platform with two pillars: technological innovation and a closer distribution
channel to end customers. This acquisition will also positively impact China
Sunergy's customer composition, as we can further focus on providing
value-added services to system installers and integrators."
China Sunergy has a strong balance sheet and will be fully capable of
funding the acquisitions, which have a total consideration of approximately
US$47 million. The consideration is payable by China Sunergy to China Electric
Equipment Group and Sundex Holdings Limited in a series of installments. The
transactions have been reviewed and approved by all three companies' Boards of
Directors.
CEEG (Shanghai) Solar Science & Technology and CEEG (NanJing) New Energy
integrate the R&D, production, sales and servicing of solar modules, with
total annual production capacities of 150 MW and 70 MW, respectively, with
capacity forecasted to be 300 MW and 170 MW by the middle of the year. Both
companies were controlled by China Electric Equipment Group Co., Ltd., a
company controlled by Mr. Tingxiu Lu, China Sunergy's chairman. These
companies have a strong sales network within the United States, Germany, Spain,
Italy, the Czech Republic and Southeast Asia.
About China Sunergy Co. Ltd
China Sunergy Co., Ltd. (Nasdaq: CSUN) ("China Sunergy") is a specialized
manufacturer of solar cell products in China. China Sunergy manufactures solar
cells from silicon wafers utilizing crystalline silicon solar cell technology
to convert sunlight directly into electricity through a process known as the
photovoltaic effect. China Sunergy sells solar cell products to Chinese and
overseas module manufacturers and system integrators, who assemble solar cells
into solar modules and solar power systems for use in various markets. For
more information please visit http://www.chinasunergy.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements. These forward-looking statements
and are based on current expectations, assumptions, estimates and projections
about the company and the industry, and involve known and unknown risks and
uncertainties, including but not limited to, the company's ability to raise
additional capital to finance the company's activities; the effectiveness,
profitability, and the marketability of its products; the future trading of
the common stock of the company; the ability of the company to operate as a
public company; the period of time for which its current liquidity will enable
the company to fund its operations; the company's ability to protect its
proprietary information; general economic and business conditions; the
volatility of the company's operating results and financial condition; the
company's ability to attract or retain qualified senior management personnel
and research and development staff; future shortage or availability of the
supply of raw materials and other risks detailed in the company's filings with
the Securities and Exchange Commission. The company undertakes no obligation
to update forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required by
law. Although the company believes that the expectations expressed in these
forward looking statements are reasonable, they cannot assure you that their
expectations will turn out to be correct, and investors are cautioned that
actual results may differ materially from the anticipated results.
SOURCE China Sunergy Co. Ltd More Press Releases »
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