Dallas, Texas 02/11/2014 (FINANCIALSTRENDS) – Hanwha Solarone Co Ltd (NASDAQ:HSOL) disclosed on 15th January that It has signed a strategic partnership with Shanghai HuiTianRan Investment Holding Group Co., Ltd. As per the terms of the agreement, the two companies together will actively scout for and develop downstream opportunities in China over the next few years. The initial project to be jointly executed would be the 700 MW capacity EPC contracts. The contracts would be executed by a joint venture vehicle which would be set up separately by the two firms.
This JV firm will in turn develop and build out solar power projects. The PV modules which would be used in these projects would be supplied by Shanghai HuiTianRan Investment Holding Group Co., Ltd there by making this venture a win-win proposition for both parties. Shanghai HuiTianRan Investment Holding Group Co., Ltd has also committed to identify additional commercial and residential properties on whose rooftop more such solar power panels would be set up and the power generated from such resources routed into the central grid.
The two firms have committed to work on signing off on a full-fledged co-operation agreement before 15th March. Commenting about the tie up, Hanwha Solarone Co Ltd (NASDAQ:HSOL) CFO and the leader for company’s downstream business has been quoted to have said that, “The MOU with HTR provides further impetus to our accelerating downstream activities in China. The contemplated cooperation on HTR’s planned 700 MW PV power plant projects with a well-established SOE provides the potential for either a large module supply agreement or selection as sole EPC provider.”
The partnership details envailed in January, is a implementation of company’s previously stated resolve to build on its existing track record and acquire more designs winds under its belt so that in the future, they can leverage the experience to bid for and execute IPP development projects.