Billed as a fast-track way to build its OEM wafering business and add to its integration efforts, ReneSola has now been forced to terminate its plans to acquire Dynamic Green Energy, which operates through its wholly owned subsidiary Jiawei. ReneSola said that local Chinese government agencies where Jiawei is located had not approved the acquisition, which was a condition in the purchase, without saying what the objections to the deal had been.
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.
“Despite the termination of the Jiawei acquisition, ReneSola’s downstream strategy remains intact and we continue to witness impressive organic growth in our JC Solar cell and module business,” said ReneSola’s Chief Executive Officer Li Xianshou. “We are still in a strong position to leverage our wafer manufacturing capabilities and deep customer relationships to quickly expand our downstream business. We expect to see significant top-line and bottom-line growth from our downstream business in 2010.”