Hon Hai Announces US$30M. Investment in Solar Energy

Taipei, Dec. 21, 2011 (CENS)--The Foxconn Technology Group yesterday announced it will invest US$30 million to set up a solar cell venture in Funing of Jiangsu Province, mainland China, amid speculations that the business conglomerate would spend a total of US$1.5 billion on the business.

According to some foreign news services, Foxconn would invest a total of US$1.5 billion and work with the county government as well as the mainland's GCL-Poly Energy Holdings Ltd. on the investment. They said the three parties on the deal have signed an agreement, and a production plant capable of turning out 400 megawatts of solar cells will come on stream in April 2012.

Industry executives estimated the US$30 million is the preliminary expenditure of the billion-dollar investment.

Following the Dec. 20 announcement Foxconn has kept a low profile in face of various reports. Senior group officials said venturing into the solar energy sector is already the group's established strategy and the announcement is just fulfilling the strategy.

Foxconn and GCL-Poly have a colorful history that included reports that the two companies fell through on a solar deal. The two denied the reports.

Industry executives pointed out that Foxconn announced the plan at a time when global solar energy market remains weak, suggesting the group is optimistic about future of the industry.