Hanwha headquarters in Janggyo-dong, downtown Seoul |
Hanwha Group said Monday that Hanwha Chemical has agreed to acquire German solar-cell maker Q-Cells for around 55 billion won ($48.4 million) in cash and take over its debts of 300 billion won.
Under the agreement, the chemical arm of the group will take over Q-Cells' subsidiary in Malaysia and its German research and production facilities. The deal is subject to approval by Hanwha Chemical's board of directors and Q-Cells' creditors.
With the acquisition, Hanwha will be able to produce solar cells with an aggregate total output capacity of 2.4 gigawatts annually, up from the current production capacity of 1.3 gigawatts. The group said that the deal will help the company emerge as a leading player in the global solar cell and panel industry.
“We signed an agreement for the acquisition Sunday night. We can payback the debt that Q-Cells owes by making profits from factory operations, so we have no pressure from the debt right now,” said a spokesman.
Hanwha took interest in the German company when it filed for bankruptcy in April. The Korean conglomerate has sent over 100 people to Germany and Malaysia over the past four months to assess the company.
It believes that cells produced in Malaysia do not fall under anti-dumping regulations of the United States and Europe, unlike those made in China.
The Korean firm acquired Chinese solar cell maker Solarfun Power Holdings two years ago, and has been expanding its presence in the global market. It has been building a polysilicon plant (used in making solar panels and cells) at Yeosu which is expect to be completed in July 2013.
The German company has about 2,300 workers in its home country and Malaysia. Q-Cells was the fourth German solar panel maker to file for bankruptcy due to a decrease in state support and competition from China.
It was founded in 1999, and was the No.1 producer of photovoltaic cells in the world in 2008.
The deal is expected to ease concerns over Hanwha’s overseas projects as many have raised concerns about whether they would proceed as scheduled after Chairman Kim Seung-youn was sentenced to four years in prison a week ago for embezzling corporate funds.