CDN NEWS | 
US NEWS 
Canadian Solar, was the world’s seventh-biggest producer of solar panels last year
A major solar panel manufacturer is transferring the assets of its Chinese unit to Canadian ownership, to safeguard sales into the U.S. as Washington steps up scrutiny of imports from the Asian nation.
CSI Solar Co., based in Suzhou, will sell 75.1 per cent of three overseas factories that serve the U.S. market to its parent company, Canadian Solar Inc., the Chinese company said in an exchange filing in Shanghai.
Canadian Solar, which is listed on the Nasdaq, was the world’s seventh-biggest producer of solar panels last year, according to BloombergNEF data, and was an early entrant into the booming energy storage business. It owns 62 per cent of CSI’s shares, and Shawn Qu is chairman of both companies.
CSI Solar shares closed down 6.9 per cent in Shanghai, while Canadian Solar rallied 18 per cent in U.S. premarket trading on Monday.
China’s dominance of the clean energy supply chain has prompted various forms of restrictions from the U.S. These include direct tariffs on Chinese solar panels and batteries, as well as restrictions on tax incentives for Chinese companies investing in the manufacturing of renewable power equipment in the U.S.
The Chinese company didn’t specify in the filing where the three factories whose ownership is being transferred are located. However, it said they comprise a 3 gigawatt-hour energy storage system plant, a 2.9 gigawatt battery factory and an 8 gigawatt solar wafer slicing operation. The three facilities have a combined value of 469 million yuan (US$66 million) and primarily supply the U.S., it said.
The factories will be used to help start two joint ventures focused on solar power and energy storage in the U.S., according to the filing. Canadian Solar will own 75.1 per cent of the JVs, with CSI holding the remaining 24.9 per cent.
CSI is aiming “to address changes in U.S. market laws and regulations, ensure normal business operations, reduce operational risks, and achieve long-term participation in the U.S. market,” it said in the filing.
This move will enable CSI “to remain compliant with potential U.S. foreign entity of concern requirements” for solar and energy-storage systems exports to the U.S., Dennis Ip, an analyst at Daiwa Capital Markets, said in a note.
Bloomberg.com
Share This:
