Solar EnerTech Establishes Joint Venture With Jiangsu Shunda Semiconductor Development Co. Ltd.
April 28 2009 - 7:30AM
PR Newswire (US)
- JV Enhances Presence and Solar Opportunities in U.S. Market -
MENLO PARK, Calif., April 28 /PRNewswire-Asia-FirstCall/ -- Solar
EnerTech Corp. (OTC:SOEN) (BULLETIN BOARD: SOEN) (the "Company")
today announced the establishment of a joint venture with Jiangsu
Shunda Semiconductor Development Co. Ltd. ("Jiangsu Shunda"), a
leading PV raw material manufacturer, to pursue solar expansion
opportunities in the U.S. region. Jiangsu Shunda is one of the
largest polysilicon and wafer manufacturers in China, with an
annual production output of approximately 1,500 metric tons of
polysilicon. The U.S. JV company, which will be called
Shunda-SolarE Technologies, Inc., is expected to begin operating in
early May of 2009. The joint venture is expected to utilize Jiangsu
Shunda's strength in polysilicon and wafer supply and Solar
EnerTech's advanced solar cell technologies as well as its
resources in the U.S. market. Overall, both parties believe the
joint venture establishes a vertically integrated operation in the
U.S. market with services ranging from the production of
polysilicon to ingots and wafers, to solar cells, panels and solar
system installation. Jiangsu Shunda and Solar EnerTech contributed
$1.0 million and $0.7 million in cash respectively to the initial
setup cost of the JV. Jiangsu Shunda will own 55% of the JV
company, Solar EnerTech will own 35% and the management of the JV
will own the remaining 10%. Mr. Yunda Ni, President of Jiangsu
Shunda will serve as the JV Chairman of the Board, Mr. Leo Young,
CEO of Solar EnerTech will serve as the Board's Vice Chairman. The
Board of Directors will be comprised of five seats, three of which
will be reserved for Jiangsu Shunda and two for Solar EnerTech. A
Chief Executive Officer of Shunda-SolarE Technologies is expected
to be identified in the near future. Mr. Leo Young, CEO of Solar
EnerTech, commented, "We are extremely pleased to establish this
joint venture with Jiangsu Shunda, a highly successful polysilicon
manufacturer in China. We have a compelling opportunity to
penetrate the U.S. market with the establishment of this JV. Solar
EnerTech has strong R&D capabilities supported by an
outstanding technical team, and a fully operational U.S. office
governed by experienced management whereas Jiangsu Shunda maintains
a UL listing, which is instrumental in conducting large scale
operations in the U.S. market, and controls the upstream supply
which can provide large volumes of silicon feedstock to the JV in
order to secure sizeable contract orders in the growing U.S.
market. Together, we can more easily penetrate U.S. solar
opportunities and establish Shunda-SolarE as a leading brand
recognized for high quality solar products and service. We plan on
providing investors with additional information on this JV in the
coming weeks and months ahead." Mr. Ni, President of Jiangsu Shunda
commented, "The goal of this joint venture is to build market share
in the U.S. and maximize profitability. There is great synergy
between both companies as well as with myself and Leo. Together, we
believe we have an excellent opportunity to expand our market
presence in the U.S. We look forward to a successful venture
together." Additional information on this joint venture can be
found in the Company's filing with the SEC. About Jiangsu Shunda
Based in Yangzhou, China, JiangSu Shunda Group focuses on the
photovoltaic market and produces polysilicon, monocrystalline
ingots, and wafers. With an annual production output of
approximately 1,500 metric tons of polysilicon, Jiangsu Shunda
Semiconductor is one of the largest polysilicon and wafer
manufacturers in China. About Solar EnerTech Corp. Solar EnerTech
is a photovoltaic ("PV") solar energy cell manufacturing enterprise
incorporated in the United States with its corporate office in
Menlo Park, California. The Company has established a sophisticated
63,000 square foot manufacturing plant located in China, in
Shanghai's Jinqiao Modern Technology Park. Currently, the Company
is capable of producing 50MW of solar cells from its existing
production line. Solar EnerTech has also established a Joint
R&D Lab at Shanghai University to develop higher efficiency
cells and to put the results of that research to use in its
manufacturing processes. Led by one of the industry's top
scientists, the Company expects its R&D program to help bring
Solar EnerTech to the forefront of advanced solar technology
research and production. Safe Harbor Statement Statements contained
in this press release, which are not historical facts, are
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based largely on current expectations and are
subject to a number of known and unknown risks, uncertainties and
other factors beyond our control that could cause actual events and
results to differ materially from these statements. These
statements are not guarantees of future performance, and readers
are cautioned not to place undue reliance on these forward-looking
statements, which are relevant as of the date of the given press
release and should not be relied upon as of any subsequent date.
Solar EnerTech undertakes no obligation to update publicly any
forward-looking statements. DATASOURCE: Solar EnerTech Corp.
CONTACT: Bill Zima, ICR Inc. at +1-203-682-8200 (Investor
Relations)
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