Hanwha Chemical said Friday that it was currently reviewing a merger between its subsidiaries Hanwha Q Cells and Hanwha Solar Holdings, to boost efficiency of its solar modules manufacturing business.


The company said that Q Cells has accepted a letter of intention for a merger from Solar Holdings, while the merger will be confirmed following Q Cell’s board of directors’ decision.

Currently, Hanwha Chemical owns 100 percent stocks of Solar Holdings. Solar Holdings holds 94 percent stock in Q Cells.

The company will be delisted from Nasdaq once the merger is confirmed. The delisting process will cost approximately 50 billion won and will be completed by year-end, the company added.

The move comes amid the Trump administration’s recent measures to strengthen protective trade policies, pressuring foreign solar businesses with sluggish investment and financing.

The company added that a merger will help the company save costs, while more than billions won are currently spent to meet the US standards to keep the company listed.

Hanwha Q Cells, a flagship company of Hanwha Group, is a leading total solar power solution provider with the world’s largest cell production capacity. Its photovoltaic products range from modules to kits, systems and large-scale solar power plants. The company operates international manufacturing facilities in Malaysia and China.

By Kim Da-sol (ddd@heraldcorp.com)