Hareon Solar Technology Co., a Chinese maker of solar panels, plans to build 479 megawatts of solar power plants for Jiangxi Shunfeng Photovoltaic Investment Co.
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.