GCL Poly is in the process of selling off its non-solar businesses and will emerge from a proposed US$500 million sale to focus on polysilicon and wafer manufacturing and sales, as well as PV plant development.
The company announced after trading hours closed yesterday that it will sell a number of its subsidiaries engaged in developing, owning and operating co-generation power plants, incineration (thought to mean waste-to-energy in this context) power plants and a wind power plant. It will sell a total of 17 cogeneration facilities, two incineration plants and one wind power plant, all in China.
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If the deal proceeds, the facilities and respective businesses will be sold to Shanghai Qichen Investment Management Co, which itself is part of Jiangsu Golden Concord New Energy, the parent company of GCL. GCL Poly’s financial advisor is Morgan Stanley. GCL Poly is looking to reverse its fortunes given the effect of falling average shipment prices for silicon products.
The parent company is currently also attempting to mitigate the impact that the ASP drop for silicon and solar wafers have had on its profits and revenues in the first half of this year through increasing production of both products. GCL already increased polysilicon production by 13.7% in the first six months of the year, increasing its capacity to 14GW from 13GW.
The deal, worth RMB3.2 billion (US$503 million), is still subject to negotiations.