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Hanwha Chemical Corp., a major South Korean chemicals maker, said Monday it has
agreed to buy a German solar cell maker for around 55 billion won (US$48.4
million) in cash and take over its debts worth 300 billion won.
The
takeover of Q-Cells, which filed for bankruptcy in April this year amid the
industry-wide slump, will help Hanwha Chemical emerge as a leading player in the
global solar cell and panel industry, the company said.
Under the
deal, the South Korean chemicals maker will take over the Q-Cells' subsidiary in
Malaysia and its German research and production facilities.
The
takeover deal is subject to approval by Hanwha Chemical's board of directors and
G-Cells' creditors.
With the acquisition of Q-Cells, Hanwha Chemical
will be able to produce 2.4 gigawatts of solar cells annually, up from the
current production capacity of 1.3 gigawatts.
Set up in 1999, Q-Cells
operates a number of subsidiaries in Germany, China and the United States,
becoming the world's largest maker of solar cells in 2008.
However,
the company filed for bankruptcy in April this year amid a severe downturn in
the solar power sector.
Hanwha's push to acquire Q-Cells is in line
with its ambition to emerge as a global leader in the solar-related
sector.
Hanwha Chemical acquired Solarfun Power Holdings, a Chinese
solar cells and modules manufacturer, in August 2010.
The company has
been building a polysilicon plant in Yeosu, 455 kilometers south of Seoul,
spending 1.04 trillion won with the aim of completing the plant by July 2013.
Polysilicon is used in solar panels and cells.