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ReneSola is increasing its capacity to offer PV OEM services and further its efforts to become a fully integrated PV manufacturer with the acquisition of China-based Dynamic Green Energy. The mainly share based transaction has been approved both companies' boards of directors. Jiawei Solarchina was a subsidiary of Dynamic Green Energy, which is currently partnering with Evergreen Solar on a 100MW plant in China. GE Capital Asia Pacific was also a major investor in Dynamic Green Energy.
Dynamic Green owns and operates ingot and wafer manufacturing facilities in Sanhe, Hebei province, as well as an upgraded metallurgical grade silicon manufacturing facility in Guiyang, Guizhou province. Its module and cell manufacturing facilities are in Wuhan, Hubei province and OEM facilities in Shenzhen, Guangdong province.
"ReneSola's acquisition of Dynamic Green will significantly increase our OEM capabilities and will accelerate the implementation of our strategy to become a fully integrated solar company," commented Xianshou Li, ReneSola's Chief Executive Officer. "The acquisition will enhance our competitiveness by enhancing our product quality, provide cost synergies and expand our strategic relationships with global key industry players. We believe the strategic benefits of uniting two highly complementary companies will create additional shareholder value through earnings accretion and access to new growth opportunities."
All the long-term contracts for OEM services, which include Evergreen and SunPower will continue.
Mr. Jay Peir, SunPower's Vice President of Corporate Development, added, "Jiawei has been a key long standing partner to SunPower since 2004. This relationship has enabled us to combine market leading technology with high quality, low cost manufacturing. We believe this acquisition will result in a stronger partner with the ability to grow and meet our continuing needs."
ReneSola said in a separate statement that its third quarter 2009 revenue outlook to be in the range of US$130 million to US$140 million and expects its gross margin to be similar to that of its second quarter 2009. Revenue outlook for 2009 is said to be in the range of US$470 million to US$500 million and maintains its prior product shipment outlook for 2009 of 450MW to 500MW.
