Archive for the ‘Corporate Transaction’ Category

Greater China makes over 50% of the world’s solar cells?

August 11th, 2010 Alexander No comments

According to recent news, active industrial expansion in China has led to breakthroughs in the production of solar cells in 2009. This now amounts to 52% of the world’s production. However, since upstream materials and downstream markets are all located overseas, China‘s solar cell industry will likely strategize to break through the upstream and downstream bottlenecks.

Last year was the most sluggish year for the global solar energy industry. Mainland Chinese officials confirmed that 80% of the industry closed down production factories. Taiwan‘s industrial status is not much better. However, in the darkest period, the industry continues to buck the trend.

The leading global semiconductor foundry, TSMC, increased its share holding of solar cell investments in U.S. Stion companies. Also, UMC and AUO increased their investments, as well.

It is noteworthy that Taiwan‘s investment in the solar energy industry is almost all concentrated in the cells and modules. It is believed that building a power plant will be the next step for mainland China.

In early 2008, a partner in the China Environment Fund invested in three solar energy companies. The partner said, “If not for the shortage of raw materials, the [solar] market will immediately become a buyer’s market. The focus of competition is for the acquisition of end customers.” Transitioning into total solution providers will enhance the competitiveness of manufacturers.

ET solar group obtained from the China Environment Fund 20 million U.S. dollars in mid-2008. Germany set up a subsidiary called ET Solutions AG, which is a systems solutions provider.

China‘s largest solar cell factory, Suntech, also announced that it will become a total solution provider and become a joint venture partner with MMA Renewable Ventures  to form Gemini SolarDevelopment Company. It will develop 10 MW of the project and provide financing. There is a clear trend: China’s solar energy investment is on the rise.

Soy-Sauce or Ketchup?

June 25th, 2010 Alexander No comments

One of the largest U.S. food manufacturers, Heinz Ketchup Group, announced that it would pay $165 million U.S. dollars to acquire production market share of soy sauce and fermented bean curd from China Foodstar to expand its presence in China’s condiment market.

It is reported that Heinz Group acquired the company from private equity firm Transpac in Singapore.  When completed, Heinz’s annual sales in China will increase by $300 million.

In 1984, Heinz set up joint venture enterprises in Guangdong with the Yantang company to enter the Chinese market and produce rice and other nutritional products.

Foodstar  currently has 2,500 employees and four production plants and mainly produces soy sauce, fermented bean curd and other food processing products.
This is Heinz’s first venture into the Chinese soy sauce market. Last year, the annual output value of China’s soy sauce market was  as high as $2 billion U.S. dollars (approximately NTD 64.0 billion).

Will we soon see Heinz labeled soy-sauce here is the States?

Read more about China’s domestic consumption.