Solargiga takes majority stake in Kinmac Solar

A subsidiary of Hong Kong’s Solargiga Energy Holdings (HKG:0757) said it plans to purchase a majority stake, or 78.9 percent, in Kinmac Solar for NT$973.28 million (US$29.9 million), through a recently signed memorandum of understanding.

The move marks Solargiga’s entrance into the building-integrated photovoltaic market through the subsidiary, Solar Technology Investment (Cayman), or STIC.

Taiwan-based Kinmac Solar is a BIPV module and PV systems installation company, active in both Europe and Taiwan. Kinmac's annual revenue was more than NT$1.4 billion in 2008, of which 70 percent was from Europe.

Solargiga, Chinese’s second-largest manufacturer of monocrystalline silicon ingots and wafers, said the move extends its business operations "downstream" through the formation of a joint venture with two independent third parties. Solargiga’s subsidiary Jinzhou Yangguang Energy entered into a joint venture with Kinmac Solar's subsidiary Kinmac Holdings and an unnamed partner.

The joint venture, to be called Jinzhou Jinmao Photovoltaic Technology in Jinzhou, Liaoning Province, is expected to produce and sell photovoltaic modules along with designing and installing PV systems. Solargiga also has production bases in Jinzhou and Shanghai.

The joint venture, with initial capital of $5.85 million, is expected to be owned by Jinzhou Yangguang (51 percent), Kinmac Holdings (35 percent) and the unnamed partner (14 percent).

Earlier this year, Kapolei, Hawaii-based Hoku Scientific (Nasdaq:HOKU) said it was awaiting a $43 million customer payment from Solargiga. It was considering whether to resell Solargiga’s allotted capacity (see Hoku to sell wafers under new polysilicon barter with Jinko). Hoku Scientific’s subsidiary had announced plans to sell silicon wafers instead of polysilicon to customers such as Suntech Power thanks to a modified deal with China’s Jiangxi Jinko Solar.

Other companies in China are beginning to chase the BIPV market. Last month, China-based solar developers ReneSola (NYSE:SOL) and Wuhan Rixin Energy announced plans for new projects incorporating BIPV. ReneSola (NYSE:SOL) received approval to build the first BIPV project in Zhejiang Province, while Wuhan Rixin Energy signed a contract to invest RMB 1 billion ($145 million) to build a 30 megawatt production facility for BIPV (see ReneSola, Wuhan Rixin launch BIPV projects in China).

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