Ascent Solar signs JV to produce solar products in China

Ascent Solar

Ascent Solar Technologies will set up a joint venture with the Government of the Municipal City of Suqian in Jiangsu Province, China.

The objective of the JV is to build a 100MW factory over six years to produce Ascent’s thin-film Copper-Indium-Gallium-Selenium (CIGS) photovoltaic modules on flexible polyimide in addition to related consumer products.

Suqian will provide approximately $32.5 million in cash and five year rent-free use of approximately 331,000 square feet of factory and office space in the Suqian Economic and Industrial Development Science Park.

As per the joint venture agreement, Ascent, which has 25 percent equity stake, will buy the factory within 5 years at the initial construction cost, and will also hold the right to purchase Suqian’s ownership interest in the JV after 5 years at 1.5 times of Suqian’s cash cost.

Ascent Solar

By the first quarter of 2016, the JV is expected to operate an end-to-end manufacturing plant of 25 megawatts capacity and related consumer products.

Suqian will also provide a package of additional incentives including a 5-year corporate tax holiday and a further 50 percent tax rebate over the next 5 years; full rebate of value-added tax for the first 2 years and 50 percent rebate for the subsequent 3 years and free accommodations for up to 3 years for key scientists, engineers and management personnel of the JV.

Victor Lee, president & CEO of Ascent, said that the partnership enables the company to accelerate its transformational consumer-centric strategy with the EnerPlex consumer brand and specialty off-grid applications given China’s huge and growing consumer base and readily available contract manufacturers.

[email protected]