Comtec Solar to enter downstream business, looking to raise $78.8 million

Comtec Solar, which manufacturers monocrystalline solar ingot and wafers in both China and Malaysia, has announced its intent to expand into the downstream solar business. No specific project details were released, however.
Via a subscription agreement with GF Holding – an investment holding company owned by Surrich International (a subsidiary of state-owned Guolian Group), China First Capital and New Citic – and Mr. Li, chairman of Henan Wanzhong, Comtec expects to raise around US$78.8 million. The deal will result in the former holding a 29% stake in the company, and the latter 11%.
In addition to entering the solar project business, Comtec has said it will use the net proceeds to explore opportunities to integrate the downstream business with its existing upstream activities, and for general working capital.
According to Comtec’s Q3 2015 financials, the group maintained a healthy financial position in the period, with a net debt position of around RMB 250.4 million (roughly $38 million) despite recording a net loss of RMB 12.3 million (around $1.8 million). Wafer shipments for the period were 124.2MW.
Comtec began solar wafer manufacturing in 2004. Across its two production locations, capacity is around 600 MW. It is said to be eyeing up a capacity ramp up in Malaysia, although no details are available and the company has not responded to requests for more information.