Press Release Clean Energy & Ocean Solutions

Hanwha Acquires Q.CELLS, One of the World's Leading Photovoltaics Companies

August 30, 2012

Hanwha to become the 3rd largest PV cells producer with the capacity of 2.3 GW

  • Acquisition value is EUR 40 million
  • Securing favorite position to gain market dominance upon the solar industry upturn

Hanwha Group becomes the 3rd largest solar cell manufacturer in the world through the successful acquisition of a German solar company Q.CELLS.

On August 29, Hanwha Chemical, through its subsidiary Hanwha Solar Germany GmbH finalized the deal with Q.CELLS to acquire their German headquarter, production facilities in Germany and Malaysia and sales offices in US, Australia and Japan.

With this deal, Hanwha Group is to obtain Q.CELLS’ headquarter office, cell and module production facilities (200 MW/120 MW) in Germany, cell production facility (800 MW) in Malaysia and sales offices in US, Australia and Japan. The total cell production capacity acquired from this transaction is equivalent to 1 GW.

The total acquisition value is EUR 40 million (around KRW 55.5 billion) with possibility of further negotiations until closing.

Hanwha has effectively renegotiated to buy in the existing loan agreement (MYR 850 million / around KRW 300 billion) signed between Q.CELLS Malaysia and the Malaysian government. With a strong support shown by the Malaysian government, the loan has been structured in such ways that Hanwha can use the profits generated from Malaysian operations to pay back in the long-term.

Seung-Youn Kim, Chairman of Hanwha Group, at the 2012 New Year’s speech said, “Due to global economic recession, the solar industry is going through some difficulties, however, we are determined to seize the opportunity upon the market recovery. Until now, human beings relied heavily on fossil fuels to come this far, but I believe that green energy is our future. Our vision of becoming a globally leading company in solar energy remains unchanged and we will continue to pursue that.”

With Q.CELLS’capacity of 1 GW added on to the existing Hanwha Solar’s cell production capacity of 1.3 GW, Hanwha will reach the total annual production capacity of 2.3 GW and becomes the 3rd largest solar cell manufacturer in the world.

Q.CELLS filed for bankruptcy on April 3 this year due to downturn in the global solar industry, European sovereign debt crisis and reduction in German government solar subsidy. Even so, Q.CELLS has remained as a leading global solar player with revenues of EUR 1,354 million and EUR 1,023 million, in 2010 and 2011 respectively.

Since 2007, Q.CELLS has strengthened its capabilities in its system business including development, finance and sales through its EPC program (Engineering, Procurement and Construction), which accumulated to 550 MW of track record.

Q.CELLS is well-known for its best-in-class R&D researchers and engineers of 250 people specializing in solar cells and manufacturing innovation. Hanwha Group will add tremendous R&D capabilities to its own solar R&D center in Silicon Valley, Korean and China through the acquisition of Q.CELLS and it will help the group to secure the favorable position to become the globally leading solar company in the near future.

Hanwha Qcells

Hanwha Qcells (Hanwha Solutions Qcells division) is one of the world’s leading clean energy companies, recognized for its established reputation as a manufacturer of high-performance, high-quality solar cells, and modules, a portfolio of intelligent storage systems, and a growing international pipeline of large-scale renewable energy projects. Hanwha Qcells also provides renewable electricity retail services and packages to end customers the world over. The company is headquartered in Seoul, South Korea (Global Executive HQ) and Thalheim, Germany (Technology & Innovation HQ) with its diverse international manufacturing facilities in the U.S., Malaysia, China, and South Korea. Hanwha Qcells strives to offer Completely Clean Energy through the full spectrum of photovoltaic products, storage solutions, renewable electricity contracting, and large-scale solar power plants. Through its growing global business network spanning Europe, North America, Asia, South America, Africa, and the Middle East, Hanwha Qcells provides excellent services and long-term partnerships to its customers in the utility, commercial, governmental, and residential markets.

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Hanwha Group

Founded in 1952, Hanwha has grown quickly by anticipating and responding to changing business environments with a balanced business portfolio that includes energy & materials, aerospace, finance and retail & services. Our expertise and synergy in key areas have catapulted us into the seventh-largest business in South Korea and a Fortune Global 500 company. Hanwha continues to grow rapidly as we strive to pursue global leadership in all of our businesses. We are building a robust foundation for sustainable development and a brighter future for everyone.

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