Trina Solar Establishes JV With Yabang Group - Quick Facts

(RTTNews) - Trina Solar Ltd. (TSL) reported signing an agreement to establish a joint venture or JV with Yabang Investment Holding Group Co., Ltd. to buy certain production assets from Changzhou NESL Solartech Co., Ltd., an unit of Yabang Group, specializing in the production of solar PV modules. The total investment by both the companies is around $45 million which would be used for capital expenditure and working capital. The JV expects to increase total solar module production capacity to 500 MW within the next year.

The JV would purchase the existing module production assets of Changzhou NESL, including plants, machinery and equipment, which would be upgraded by utilizing the combined capital investment and international expertise provided by Trina Solar and Yabang Group. The facility would be managed by Trina Solar management, who would bring international best practices in innovation, environmental standards, quality control and technological expertise to the daily operation of the facility.

Jifan Gao, chairman and CEO of Trina Solar, said: "As we expect the demand for solar modules will continue to grow, particularly in China, Japan and emerging markets, the Joint Venture will strengthen Trina Solar's market position by delivering much needed extra module production capacity."

According to the JV agreement, the JV would be named Changzhou Trina Yabang Solar Energy Co., Ltd. Trina Solar would own a 51 percent stake in the JV and Yabang Group would hold the final 49 percent. Trina Solar and Yabang Group anticipate to complete the establishment of their joint venture partnership by 2013 end.