Chaori Solar Plans on Expanding Europe Business

Shanghai Chaori Solar Energy Science and Technology, a producer of single crystal silicon solar batteries, plans to inject 60 million euros into its Hong Kong subsidiary for its European expansion, reports China Business News, citing a company filing on 21 Sept. The Hong Kong subsidiary was established earlier this year with a registered capital of 28 million euros. Chaori Hong Kong had as of end August established two overseas subsidiaries in Luxemburg and in Delaware.

Of the 60 million euros, seven million euros will be further injected into Chaori Sky Solar Energy, 12.2 million euros will be injected into Chaori Solar USA and 40.8 million euros will be used to set up a joint venture, CS Solar Project International.Chaori Solar will hold a 51 percent stake in the joint venture, which will have a registered capital of 80 million euros.

Chaori Solar's partner in the joint venture, China Solar Gmbh, is a German registered company specializing in the construction of power stations.Through the end of the first half, China Solar had purchased more than 400MW of equipment components from China since 2004. It currently owns interests in 40MW of power generation facilities and has another 50MW of power generation facilities under construction.The facilities are mainly located in Germany and in other E.U. countries. China Solar has another 1,000MW of solar power station programs on hand.

According to Chaori Solar, though the long-term prospects of the photovoltaic industry are good, there are short-term fluctuations in the prices of solar modules due mainly to changes in government policies. The company has thus decided to diversify into the building of solar power stations. Shares of Chaori Solar were up 2.34 percent to trade at 18.39 yuan at 10:36 today.