BREAKING – Is Suntech about to be bought out ?
05 Sep, 2012
Multiple industry insiders are reporting that a buy-out of one of the worlds largest solar companies, Suntech is “imminent”.
Although publicly denying the takeover a few weeks ago, sources suggest that a recent face saving deal between GCL Poly and Suntech is now on the brink.
Suntech can’t seem to catch its breath lately, a key risk of being such a big player and the recent litigation case, following a 2011 loss close to $1B, has not been taken lightly in important circles.
GCL Poly are well known to PV industry insiders but less known outside. With a 2011 wafer production capacity of 8GW and more than 17,000 employee’s they are undeniably an upstream PV industry powerhouse, and have been looking at going downstream for some time, including “sniffing around” in Australia in recent times.
GCL have neither a consumer recognisable brand nor a history and experience in high volume module production, so such a take over would, on the surface appear logical.
However, GCL has not been immune to the perils of rapidly reducing average selling prices with market analysts noting they have debts in the order of $5B.
The move was reportedly driven by the Chinese Government who “asked around the industry for possible investors” and GCL did confirm they were one of the companies asked, according to Solar PV Investor.
The shake up of China’s solar PV industry has undoubtedly well and truly started.