Hanwha Chemical the owner of PV module manufacturer, Hanwha Q CELLS has made a US$188.5 million cash injection into the company to expand capacity and expand its downstream PV project business.
“The capital increase will further strengthen our balance sheet as well as the bankability of our high quality and low LCOE photovoltaic solutions,” said Charles Kim, CEO of Hanwha Q CELLS. “Thus we solidify Hanwha Q CELLS´ position as [the] reliable partner in PV industry and underline our overall commitment to become a leader in solar.”
However, the company did not provide details on what the increased capacity levels would be. The majority of Hanwha Q CELLS integrated module capacity is based in Malaysia, with a high-efficiency plant in Germany.
“We will integrate one additional production line at our manufacturing site for solar cells in Malaysia,” added Kim. “Accordingly we will raise capacities for module production together with our certified partners in Europe and Asia.”
Sister company, Hanwha SolarOne, based in China, recently said that it expected to increase module OEM production on behalf of Hanwha Q CELLS, adding to the growing level of outsourcing seen in the industry.
Many companies are restricting capital spending to use funds to build-up downstream project pipelines and restrict capital spending to module assembly expansion due to low capital requirements and the ability to use underutilised capacity at tier two and three module manufacturers in China.
Hanwha Q CELLS noted that its planned expansions in capacity and the downstream power plant solutions business would boost its business prospects in 2014.
“On the basis of our high quality solar cells, modules and PV applications “Engineered in Germany”, we will further strengthen our position as the competent partner for PV power plant solutions in 2014 – including project development, EPC, financing and other services,” added Kim.
The company recently announced business plans to boost its commercial downstream business model in the US, a key potential growth market.