Hong Kong-based polysilicon producer GCL-Poly Energy Holdings Ltd. has revealed this week that it is to relinquish all of its non-solar related assets to focus solely on the production of solar products.
Data from GCL-Polys 2014 financial reports showed that the company generated 68% of its revenue for the year ended December 31 from the solar business, which includes the production of polysilicon and wafers used to manufacture solar cells.
Having suffered a fall in first-half profits this year caused by a global supply glut of polysilicon serving to suppress product prices the company evidently believes it can increase its profits by focusing solely on solar activities.
To that end, GCL-Poly has lined up the sale of all interests and subsidiaries not involved in the development or production of solar products to Jiangsu Golden Concord Energy Co. for a reported sum of 3.2 billion yuan ($503 million).
Once the sale has been completed, GCL Poly will switch its chief focus to the continuation of its polysilicon and wafer production, as well as augmenting its operations in developing downstream solar projects both within China and globally.
As part of the sale arrangement, GCL Poly will relinquish the entire stake in 17 operational cogeneration power plants, one wind power facility and two incineration plants. Collectively, these assets boast a combined installed power capacity of 843.8 MW.
Upon announcing details of the sale, GCL-Polys shares rose 6.8% – the companys largest one-day gain since August 27.
Popular content
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Share
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.