JinkoSolar agrees to take on Topoint assets
JinkoSolar has announced that it has reached an agreement to operate the restructured manufacturing assets of Topoint, beginning January 13, 2014. The manufacturing assets of Topoint include 500 MW capacity for silicon wafers, 500 MW for PV cells, and 100 MW for PV modules.
Topoint is a high-tech PV manufacturer with production and R&D facilities located in the Huangwan Industry Park in Haining, Zhejiang Province. It is currently undergoing restructuring under the supervision of the Haining City government and the Haining City People's Court.
JinkoSolar was invited by the bankruptcy administrator and the Haining City government to participate in Topoint's reorganization, in light of JinkoSolar's extensive operating experience, solid balance sheet and reputation for advanced technology. Pursuant to a leasing agreement entered into between the Company and the bankruptcy administrator, the Company will operate the manufacturing assets of Topoint starting from January 13, 2014 until the completion of the reorganization. After the reorganization, JinkoSolar plans to take ownership of Topoint and continue to operate the manufacturing assets.
If JinkoSolar is ultimately approved to become the owner of Topoint upon completion of the reorganization, Topoint's assets will allow the Company to continue to address the increasing demand for its solar products from its growing customer base. With the addition of Topoint's production facilities, JinkoSolar's annual silicon wafer and ingot, solar cell, and solar module production capacity will be approximately 2.0 GW, 2.0 GW and 2.1 GW, respectively.
"We are delighted to reach an agreement to operate Topoint's assets," commented Mr. Kangping Chen, JinkoSolar's chief executive officer. "Topoint's high-quality assets, consisting of technologically advanced and recently purchased equipment, will enable us to cost-effectively meet the growing demand of our strong international customer base. We believe that the geographic proximity of our existing facilities in Haining City with Topoint's assets will allow us to leverage our existing logistical infrastructure to efficiently integrate Topoint's assets. As the industry continues to consolidate, we expect dominant PV industry players to continue to acquire the high-quality assets of companies exiting the industry. As an industry leader, JinkoSolar has differentiated itself with a proven strategy that allows us to selectively participate in the reorganization of companies with synergistic assets. This agreement expands our capacity to provide various solar products and improves our cost structure and we look forward to leveraging these synergies to take advantage of the bright future of solar energy."
