JinkoSolar to Take Over Rival Plants Under ReorganizationEhren Goossens
JinkoSolar Holding Co., the second-best performing solar manufacturer in the past year, agreed to assume control of a struggling rival’s production assets to boost capacity as global demand for photovoltaic panels climbs.
The solar industry is emerging from a two-year slump as a global surplus in capacity dragged down panel prices and eroded profits. That drove some companies into bankruptcy, creating acquisition targets for stronger photovoltaic producers, Jinko Chief Executive Officer Chen Kangping, said in the statement.
“As the industry continues to consolidate, we expect dominant PV industry players to continue to acquire the high-quality assets of companies exiting the industry,” he said in the statement.
Jinko was invited by a bankruptcy administrator and Haining city officials to participate in Topoint’s reorganization. It will operate the plants under a leasing agreement and assume ownership when the reorganization is complete.
The sites have annual capacity of 100 megawatts of panels, and will add to Jinko’s current production capabilities of 2 gigawatts.
Topoint is restructuring under the supervision of the Haining city government and the Haining City People’s Court. The company is comprised of Zhejiang Topoint, Zhejiang Yutai Photovoltaic Material Co., Zhejiang Weishida Photovoltaic Material Co. and Zhejiang Jiutai New Energy Co.
Global demand for solar panels may have increased as much as 39 percent to 42.6 gigawatts last year, according to data compiled by Bloomberg.
Jinko gained 1.8 percent to $35.41 at the close in New York. The American depositary receipts, each worth four ordinary shares, have quadrupled in the past year, the most among the 17-member Bloomberg Global Large Solar Energy index after Canadian Solar Inc.