The Municipal Government of Dongguan has supplied Anwell Technologies’ wholly owned subsidiary, Dongguan Anwell Digital Machinery, with US$108.67 million (RMB700 million), which will go towards the company’s development of a second thin-film solar panel manufacturing facility in Dongguan.
Since the Dongguan Government invested a significant portion of funds into Anwell, it will become a 19.5% shareholder in Dongguan Anwell, bringing the subsidiary’s value to US$680 million (RMB3.6billion). At the end of five years after the initial government financing, the Dongguan Government will have an option to sell its shares in the Anwell subsidiary to Anwell at cost plus interest.
“The entry of the Dongguan Government as a strategic investor in our subsidiary provides strong assurance to our shareholders, customers and other stakeholders on the long term viability of our solar business. The premium valuation given to Dongguan Anwell Digital Machinery by the Dongguan Government is a strong vote of confidence in our investment potential and future growth, as we significantly ramp up our production capacity to meet global demand for thin film solar panels,” stated Franky Fan, executive chairman and CEO of Anwell Technologies.
This recent investment comes just one month after Anwell secured over US$100 million from the Municipal Government of An Yang City in Henan Province for the expansion of its thin-film production in China. Combined, the two investments by the municipal governments of both cities total US$186.3 million (RMB1.2 billion). Anwell intends to reach a 1.5GW annual production capacity within five years.