PV module encapsulant producer STR Holdings could be the US front for its parent company, China-based project developer, Zhenfa Energy Group entering the US market.
A key Zhenfa executive, Qu Chao previously appointed to STR’s board of directors has been given a new role as vice president of Strategic Investment at STR and said to be a specialist in downstream solar development and finance, is to support efforts to diversify STR’s business into the ‘renewable energy space'.
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The majority of acquisitions between Chinese PV companies and western PV companies have meant that few have been or remained publically listed, either because the companies were bankrupt at the time of purchase and de-listed or were start-ups.
In the case of STR, Zhenfa has made no attempt as yet to take the NYSE listed firm private.
The latest change to a senior manager’s role that is more in align with his expertise and experience is a strong indication that STR could become the face of Zhenfa in North America, tapping the markets for project finance for projects in the US as well as on an international basis.
Zhenfa recently announced an agreement with Rolta Power in India to develop 2GW of solar projects in India. The majority of PV projects completed by Zhenfa to date have been in China.
STR to close Malaysian encapsulant plant again
In a separate statement, STR said it would once again close its module encapsulant material manufacturing plant in Malaysia, effective at the beginning of August, 2015.
The company said that the closure was due to the fact that its largest customer in Malaysia had planned to exit the OEM module production business.
In November last year, STR said it had expanded production at its plant in Malaysia to meet growing demand after the latest round of US anti-dumping duties on Chinese and Taiwanese made solar cells.
STR’s Malaysia facility had previously been earmarked to be ramped down as part of its restructuring efforts, ahead of the Zhenfa acquisition but the company had achieved certification with a potential new and ‘significant’ customer for the facility.
The company also noted that plant underutilization and increasing costs in Malaysia resulting from a Goods & Services Tax (GST) being introduced, and the newly launched investigation by the European Commission on anti-dumping and countervailing duties on solar cells and modules consigned from China and assembled in Malaysia and Taiwan, contributed to the plant closure decision.
“We have enjoyed much success over the years in Malaysia and owe a debt of gratitude to our loyal employees, the Malaysian Government and the Port of Tanjung Pelepas,” said Robert S. Yorgensen, chairman, president and CEO, STR Holdings. “Unfortunately, the conditions at our factory in Malaysia have changed to the point where it is no longer economical to continue production. On a positive note, we expect the closure and liquidation of assets at this facility to ultimately strengthen our cash position and increase utilization in our Spanish and Chinese factories as work is repositioned.”
STR has also appointed Kong Weijie as vice president, business development and general manager, China. Kong was said to be focused on the development of new lines of business, primarily developing synergies with the Zhenfa Group ‘as a platform for expansion.’
Kong was appointed as the assistant of Zhenfa Group in March 2015 and also serves as the director of Zhenfa Group's Procurement Department.