CHANGZHOU, China, Nov. 29, 2013 /PRNewswire/ -- Trina Solar Limited ("Trina Solar" or the "Company"), a global leader in photovoltaic ("PV") modules, solutions, and services, today announced that it has entered into an agreement (the "JV Agreement") to establish a joint venture (the "Joint Venture") with Yabang Investment Holding Group Co., Ltd. ("Yabang Group") to acquire certain production assets from Changzhou NESL Solartech Co., Ltd. ("Changzhou NESL"), a subsidiary of Yabang Group, which specializes in the production of solar PV modules. The total investment by Trina Solar and Yabang Group is approximately US$45 million which will be used for capital expenditure and working capital. The Joint Venture aims to increase total solar module production capacity to 500 MW within the next 12 months.
The Joint Venture will acquire the existing module production assets of Changzhou NESL, including plants, machinery and equipment, which will be upgraded by utilizing the combined capital investment and international expertise provided by Trina Solar and Yabang Group. The facility will be managed by Trina Solar management, who will bring international best practices in innovation, environmental standards, quality control and technological expertise to the daily operation of the facility.
"We are delighted to enter into this Joint Venture Agreement with Yabang Group," said Mr. Jifan Gao, chairman and CEO of Trina Solar. "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."
Mr. Gao added, "The Joint Venture will enable us to quickly and efficiently increase production capacity in a cost-effective manner. This move demonstrates Trina Solar's strategic approach to expanding capacity through acquisitions as opposed to organic growth, which we believe will help ensure the industry's existing capacity is being used productively. We are pleased to have the opportunity to collaborate with Yabang Group on this important partnership. This will not only benefit our customers by guaranteeing a supply of high quality and reliable products, but will also promote a sustainable and balanced solar industry in China."
Mr. Xiaochu Xu, chairman of Yabang Group, said, "We are very pleased to form this strategic alliance with Trina Solar. The Joint Venture will take advantage of the capital investment from both companies and Trina Solar's experience in large-scale manufacturing, extensive expertise in R&D and its global sales and marketing network, which will allow the new company to accelerate the growth of the solar business."
According to the JV Agreement, the Joint Venture will be named Changzhou Trina Yabang Solar Energy Co., Ltd. Trina Solar will hold a 51 percent stake in the Joint Venture and Yabang Group will hold the remaining 49 percent. Trina Solar and Yabang Group expect to complete the establishment of their joint venture partnership by the end of 2013.
About Trina Solar Limited
Trina Solar Limited (NYSE:TSL) is a global leader in photovoltaic modules, solutions and services. Founded in 1997 as a PV system integrator, Trina Solar today drives smart energy together with installers, distributors, utilities and developers worldwide. The company's industry-shaping position is based on innovation excellence, superior product quality, vertically integrated capabilities and environmental stewardship. For more information, please visit www.trinasolar.com.
About Yabang Investment Holding Group Co., Ltd.
Yabang Investment Holding Group Co., Ltd., headquartered in Changzhou, Jiangsu, is a Chinese conglomerate engaged in businesses across multiple industries, including chemical, pharmaceutical, logistics and real estate. The group is among the top 500 Chinese enterprises covering an area of 500 million square meters and with 15,000 employees. The group has achieved sales revenue of approximately US$ 5.0 billion in 2011.
About Changzhou NESL
Founded in October 2006, Changzhou NESL has evolved into a national high-tech enterprise focusing on the research, development, design and manufacturing of monocrystalline and polycrystalline solar panels, BIPV modules and on-grid and off-grid solar power systems. It holds a number of patents for solar PV applications and products. Changzhou NESL has over 1,100 employees worldwide and is able to provide comprehensive and efficient solar power system solutions for customers across the globe.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance its activities; the effectiveness, profitability and marketability of its products; the future trading of the securities of the Company; the Company's ability to operate as a public company; the period of time for which the Company's current liquidity will enable the Company to fund its operations; general economic and business conditions; demand in various markets for solar products; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
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SOURCE Trina Solar Limited