Hanwha Snaps up Bankrupt Q-Cells

FRANKFURT, Aug 26 (Reuters) - South Korea's Hanwha Corp intends to buy solar Group Q-Cells, the insolvent German group said in a statement on Sunday.

Hanwha and Q-Cells' insolvency administrator Henning Schorisch had signed a contract, which needs to be approved by a creditors' meeting to be held on Aug. 29.

Q-Cells, once the world's largest maker of solar cells, said Hanwha would take on liabilities, which amount to "the low hundreds of millions."

In addition it would pay a "medium double-digit million-euro range" in cash," Q-cells said in the statement. The deal was excluding convertible bonds issued and guaranteed by Q-Cells.

Q-Cells, which employs about 2,300 people, filed for insolvency in April and became the most prominent victim so far in an industry shakeout that has already claimed some of its rivals in Germany and the United States, including Solon, Solar Millennium and Solyndra.

After going public in 2005, Q-Cells went on to become the world's largest maker of solar cells but lost that title in 2009, suffering from low-cost competition from Asia, pricing pressure and excess supply of solar cells in the market.

Shares in the company, headquartered in Bitterfeld-Wolfen, once the hub of the former East Germany's ailing chemicals industry, were worth almost 84 euros ($110) at their peak in late 2007.

The stock closed at 0.17 euro on Friday, up 32.8 percent on the day, as traders pointed to market chatter of a final deal with Hanwha.

Hanwha in late June said it was conducting due diligence on Q-Cells.

Also in June, Q-Cells sold its thin-film solar module maker Solibro to Hanergy Holding Group, China's largest privately-owned provider of renewable energy.

Q-Cells and LDK Solar Announce Formation of Joint Venture for Development of PV Systems in Europe and China

XINYU CITY, China and SUNNYVALE, Calif., April 8 /PRNewswire-FirstCall/ -- Q-Cells SE and LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK) today announced the formation of a joint venture focusing on PV systems and market development in Europe and China. Given their complementary core business models and regional market expertise, the two companies intend to take advantage of value chain optimization and integrated cost reduction.

A joint project pipeline is already in place and the first 40MW project has commenced. The projects of the joint venture will utilize solar wafers from LDK Solar and solar cells from Q-Cells, and will not require additional working capital financing or other funding from the two companies. The joint venture is already in discussions with potential buyers of the first turn-key project, which will be in Europe, and is in the planning stages for future joint projects in the emerging Chinese market.

The partnership between the two companies in the area of PV systems is not intended to be exclusive, but rather to focus on developing specific projects of mutual benefit, with the shared goal of accelerating the move to grid parity.

"We are very pleased to announce this joint venture and further expand our relationship with LDK Solar," commented Anton Milner, CEO of Q-Cells SE. "This joint venture will strengthen our position in the crucial business area of large-scale PV power plants."

"We look forward to the many new opportunities that will emerge as a result of our partnership with Q-Cells," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "As leaders of the solar industry, we are excited to announce this joint venture for exploring and developing new business."

Q-Cell Selects Silicon Border Science Park For Expansion

SAN DIEGO--(BUSINESS WIRE)--Silicon Border Science Park, located in Mexicali, the capital city of Baja California, Mexico, has been selected by Q-Cells, the world’s largest solar cell manufacturer, for its next major expansion.

Q-Cells’ primary manufacturing facility is located in Bitterfeld-Wolfen, Germany. The company chose Silicon Border Science Park for its American manufacturing site because of its strategic location and business-friendly environment.

The Science Park is a 10,000-acre, world-class science and technology based industrial park that supports leading-edge manufacturing and research facilities owned by major technology groups from across the globe. The Park is located on the U.S. and Mexican border, which provides easy access to all of the top technology hubs within the U.S. and enables manufacturers to cost-effectively compete with operations anywhere in the world. It is a two-hour drive east of San Diego; a three-hour drive to both Los Angeles and Phoenix; and a two-hour flight to Dallas and Austin. Its proximity provides an ideal location to target the U.S. market, which is the world’s largest consumer of electronics and potentially will become the largest for solar products.

“Our goal is to provide a strategic manufacturing alternative to Asia for cost-effective, high technology operations in North America,” said Daniel J. Hill, CEO of Silicon Border. “We have been working diligently to bring advanced manufacturing back to this region, and with this expansion decision from Q-Cells, this initiative is now becoming a reality.”

Silicon Border has entered into a financial partnership with ING Clarion to fund the construction of the Science Park, and a partnership with the Mexican Design & Construction Firm, Maiz Transforma to complete the infrastructure build-out.

The Park’s strategic location will allow Q-Cells to have excellent business flexibility for its global operations. Mexico has free trade agreements with 43 countries worldwide, including the U.S., and offers tax and financial incentives that are equal to, if not better than, most any place in the world. The presence of Q-Cells within the Park is also a benefit for Mexico. It is an important first step in the country’s goal of developing the solar industry for its economy, and enables them to become a world leader in the alternative energy sector.

Anton Milner, Q-Cells Chief Executive Officer, said: “The location is ideal for the American markets. With our strategic decision to locate the innovative Thin Film technology in Silicon Border/Mexicali we want to jointly enter into the Solar-High-Tech era in Mexico.”

Q-Cells’ manufacturing complex will be comprised of separate facilities, and will be developed in phases, with construction of the first phase beginning in the fourth quarter of 2008. Facility and plant investments are expected to reach up to $3.5 billion in the mid to long term. The expansion plans are contingent upon the development of the Photovoltaics markets in the U.S., Mexico and Latin America, that will be supplied from Mexicali. The overall size of the site will be 60 hectares (150 acres).

Bringing Q-Cells to Mexico is a reflection of the excellent working relationship and leadership that Silicon Border recognizes in the Baja California government, in particular SEDECO, the state’s department of Economic Development, who has jointly promoted Silicon Border Science Park since its inception.

Guided by U.S. semiconductor industry veterans, Silicon Border is a cost-effective, manufacturing alternative in North America for the world’s most advanced technologies, such as semiconductor, solar cell, telecommunications and flat-panel display manufacturers. It provides 10,000 acres of land for business space supported by a world-class, industrial infrastructure and a significant Planned Urban Development Community. The Science Park is in close proximity to three major area universities, and will be home to the Baja California State University campus of engineering.

Silicon Border Development is currently in discussion with a number of additional companies looking to grow their global operations.

LDK Solar Lands 10 Year Deal With Q-Cells

XINYU CITY, China and SUNNYVALE, Calif., Dec. 10 /PRNewswire-FirstCall/
-- LDK Solar Co., Ltd. (NYSE: LDK), a leading manufacturer of multicrystalline solar wafers, announced today that it has signed a 10-year "Take or Pay" contract to supply multicrystalline wafers and polysilicon to Germany-based Q-Cells AG.

Under the terms of the agreement, LDK Solar will deliver more than 6 giga watts of multicrystalline solar wafers to Q-Cells over a ten-year period commencing in 2009 through 2018. LDK will use polysilicon from its polysilicon plant that is currently under construction, or other sources. Q-Cells shall make prepayments in the order of 10% of the silicon value to
assist LDK with financing the expansion required to supply these volumes. Additionally, Q-Cells has the option to purchase further silicon wafers if LDK expands its production capacity.

"We are very pleased to expand our long standing relationship with Q-Cells with this significant supply agreement," stated Xiaofeng Peng, Chairman and CEO. "We believe this contract is a testament to the quality of our products and strong customer relationships. We are also pleased to continue to support Q-Cells' growth plans."

"LDK has been a highly reliable partner and we are pleased to deepen our business relationship with the company," stated Anton Milner, CEO of Q-Cells AG. "This 10-year contract with LDK ensures that we will continue to receive their high-quality multicrystalline wafers in support of our growth plans."

Asian Solar Demands Met by BP

SYDNEY BP, one of the largest makers of solar cells, expects Asian sales to accelerate as 1 billion people seek access to electricity and developed nations like Japan reduce fuel imports.

Sales in the Asian market could grow 50 percent a year by 2016, from a maximum of 30 percent now, driven by increased demand in China, South Korea and Japan, Mark Twidell, BP Solar's director for Asia, said. BP expects global solar manufacturing revenue to double by 2008 from almost $500 million in 2005.

Asia is poised to overtake Germany as the industry's main source of growth as rising prices for oil, natural gas and coal drive demand for renewable energy. The trend has prompted the emergence of specialized solar companies like the Chinese Suntech Power Holdings and the German Q-Cells and Conergy.

"Energy security, I think, is a huge driver" for solar energy demand, Twidell said recently. "There's a good school of thought that says just from a straight risk-portfolio perspective you need renewables in your portfolio in that they are not linked to the price of oil or the price of carbon."

BP in December formed a joint venture in China with China Xinjiang SunOasis, China's largest electrical transformer company, with the aim of tapping a market that is set to multiply 50-fold in the next 15 years.

China's solar market is currently about 20 megawatts a year, and the country is targeting growth of about 1,000 megawatts a year by 2020, about three-quarters of the global market today, Twidell said. South Korea is aiming for similar growth, he said.

Asian solar panel equipment sales could rise to $36.1 billion by 2010 from $8.3 billion in 2004, Photon magazine said in August. India, which has become one of the largest markets for wind power generation, also offers potential in solar energy as use is currently "very low," KPMG International said this month in a report... read more