Hanwha Chemical to acquire German solar cell maker

Hanwha Chemical Corp., a key affiliate of Hanwha Group, is currently in the final stage of capping the acquisition deal of Germany’s Q-Cells SE, once the world’s No. 1 holder of the global solar-cell and module market share, industry sources said.

Some Hanwha Group officials were quoted as saying Thursday that should there be no other extraordinary circumstances, Hanwha Chemical will be prioritized in the bid as soon as next week and take over the German solar energy firm as early as next month. Hanwha Group did not make an official comment on the takeover report.

Hanwha Chemical has openly promoted the solar energy industry as a future high-potential sector, and analysts said the takeover will be a boon to such move.

Experts also expect that Hanwha’s acquisition of Q-Cells with its advanced core solar technology will significantly heighten Korea’s stance in the global solar energy industry.

Q-Cells dipped to record losses after it filed for insolvency in April and reported a quarterly loss in July.

The price of the German solar system company’s shares on its country’s DAX exchange fell 6.7 percent to 1.12 euro cents in July, the lowest ever since the company’s IPO in October 2005.

The ongoing recession in Europe has dragged down the prices and the profit margins of cells and panels, adding to the gloom of already-shrunk solar industry.

At least six German solar companies filed for insolvency since December, 2011, according to a Bloomberg report.

Hanwha Group chairman Kim Seung-youn expects the global solar energy industry to thrive once the current European debt crisis and Chinese sluggish growth rate are resolved.

It is said the chairman sees that the takeover will lead to further cost-cutting and quality enhancement, ultimately boosting the global leader’s position in the solar energy sector.

By Chung Joo-won (joowonc@heraldcorp.com)