By Park Jin-hai
Hanwha Group aims to be the world' leading solar energy company in terms of cell production, sales and profit by 2020 with the merger of its two foreign-based solar companies Hanwha SolarOne and Hanwah Q CELLS.
"Through the merger, we will become the top company in terms of the volume of cell production," Nam Seong-woo, CEO of China-based Hanwha SolarOne, who will lead of the merged company, told a press conference in Seoul on Thursday.
"We will not spare our efforts to take another step and be the top solar energy firm in terms of sales, profitability and market share as well. By 2020, we believe that we could achieve our goal, taking 10 percent of the global market share."
Nam said the merged solar company aimed to post $3 billion in sales next year. But he did not specify estimated sales for the target year 2020.
The company announced the merger on Monday.
As part of a group-wide restructuring plan to focus more on its core businesses, Hanwha SolarOne, its China-based solar panel maker, and Hanwha Q CELLS, a photovoltaic cell maker in Germany will be integrated.
When the merger is complete in two or three months, the new company will become a 3.28 gigawatt cell manufacturer, ahead of the current top solar company, China's Yingli Solar with 3.19 gigawatt cell production capacity.
Nam said the merger could not have come at a better time to give the company a competitive edge.
"Our rivals are the companies that have survived the overheated market environment with technological advances and competitiveness," he said. "To win over our rivals and gain a competitive edge, we should take full advantage of the economy of scale and provide better technology and competitiveness."
Hanwha estimates the merger will cut costs by 11.8 billion won in the short-term, through savings on procurement, marketing and distribution expenses.
Nam said the new company planned to focus on businesses with high returns.
"So far the solar energy business of both companies was based on sales of modules," he said. "That will change. We will weigh more on the downstream energy field with higher returns.
"By streamlining overlapping businesses and sharing the talents of both companies, we will emerge as the world top solar energy company."
He said the downstream solar market had an average 7-10 percent margin, while the margin from sales of modules remained as low as 1-2 percent.
He also said the company could be better placed than rivals that mainly have plants in China, because the U.S. is moving to impose anti-dumping tariffs on solar panels and cells made in China and Taiwan.
"When the German-based Hanwha Q CELLS develops solar cells, we could produce them either at its Malaysia plant or SolarOne's Korean plant, free from U.S. anti-dumping measures," Nam said.
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| Nam Seong-woo, Hanwha SolarOne CEO, speaks at a press conference at the 63 Convention Center, in Seoul, Thursday. / Courtesy of Hanwha Group |
"Through the merger, we will become the top company in terms of the volume of cell production," Nam Seong-woo, CEO of China-based Hanwha SolarOne, who will lead of the merged company, told a press conference in Seoul on Thursday.
"We will not spare our efforts to take another step and be the top solar energy firm in terms of sales, profitability and market share as well. By 2020, we believe that we could achieve our goal, taking 10 percent of the global market share."
Nam said the merged solar company aimed to post $3 billion in sales next year. But he did not specify estimated sales for the target year 2020.
The company announced the merger on Monday.
As part of a group-wide restructuring plan to focus more on its core businesses, Hanwha SolarOne, its China-based solar panel maker, and Hanwha Q CELLS, a photovoltaic cell maker in Germany will be integrated.
When the merger is complete in two or three months, the new company will become a 3.28 gigawatt cell manufacturer, ahead of the current top solar company, China's Yingli Solar with 3.19 gigawatt cell production capacity.
Nam said the merger could not have come at a better time to give the company a competitive edge.
"Our rivals are the companies that have survived the overheated market environment with technological advances and competitiveness," he said. "To win over our rivals and gain a competitive edge, we should take full advantage of the economy of scale and provide better technology and competitiveness."
Hanwha estimates the merger will cut costs by 11.8 billion won in the short-term, through savings on procurement, marketing and distribution expenses.
Nam said the new company planned to focus on businesses with high returns.
"So far the solar energy business of both companies was based on sales of modules," he said. "That will change. We will weigh more on the downstream energy field with higher returns.
"By streamlining overlapping businesses and sharing the talents of both companies, we will emerge as the world top solar energy company."
He said the downstream solar market had an average 7-10 percent margin, while the margin from sales of modules remained as low as 1-2 percent.
He also said the company could be better placed than rivals that mainly have plants in China, because the U.S. is moving to impose anti-dumping tariffs on solar panels and cells made in China and Taiwan.
"When the German-based Hanwha Q CELLS develops solar cells, we could produce them either at its Malaysia plant or SolarOne's Korean plant, free from U.S. anti-dumping measures," Nam said.
