Jinko Solar, a Chinese solar module manufacturer, has recently announced the sale of its subsidiary, Xinjiang Jinko, for RMB 4.3 billion (equivalent to approximately US$606.7 million). This strategic move by Jinko Solar involves the transfer of all shares previously held by its subsidiary, Jiangxi Jinko, effectively separating the two entities. The primary objective behind this transaction is to streamline operations, enhance production efficiency, and optimize facility utilization within Jiangxi Jinko.
The sale of Xinjiang Jinko attracted buyers such as Ziyang Major Industry Equity Investment Fund Partnership and Mr. Dong Shihong, both of whom have acquired the subsidiary as part of the deal. This significant development allows Jinko Solar to divest itself of Xinjiang Jinko while ensuring the continuity of its operations under new ownership.
In a separate announcement, Jiangxi Jinko disclosed plans to construct a sizable manufacturing base with an impressive capacity of 56GW in Shanxi Province. According to the agreement signed between Jiangxi Jinko and the Shanxi government, the manufacturing base will be developed in four distinct phases, with each phase boasting an annual production capacity of 14GW. These phases will encompass the manufacturing processes of ingots, wafers, cells, and modules.
The initial two phases of the manufacturing base are projected to commence production in the first and second quarters of 2024, while the final two phases are anticipated to become operational by 2025. Jiangxi Jinko's ambitious endeavor aligns with the ever-increasing demand for solar energy solutions and underscores their commitment to expanding their manufacturing capabilities.
With these recent developments, Jinko Solar aims to optimize its operations by divesting Xinjiang Jinko, while Jiangxi Jinko sets its sights on establishing an impressive manufacturing base in Shanxi Province. These strategic moves reflect the company's commitment to adapt to market dynamics and position themselves for future growth and success in the solar industry.
