Hareon said it will also provide engineering and procurement services for the unit of Shunfeng Photovoltaic International Ltd. under a 4.19 billion yuan ($684 million) contract, according to a statement to the Shanghai stock exchange.
In addition to the construction contract, Jiangx Shunfeng will buy a 95 percent stake in the plants, and another 20 megawatts of Hareon’s solar projects, for an undisclosed sum, Hareon said in a separate statement.
Solar-component manufacturers are venturing into project development after their profits declined on slowing demand and a supply glut. Hareon and Jiangxi Shunfeng’s parent both reported losses last year.
The projects “will benefit the company to further expand photovoltaic power-plant development business, raise market share and improve overall profitability,” said Hareon.
To contact the reporter on this story: Feifei Shen in Beijing at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org