이 기사는 2022년 05월 10일 08:14 thebell 에 표출된 기사입니다.

South Korean energy firm Hanwha Solutions is considering acquiring Woongjin Energy as it seeks to benefit from vertical integration.

Hanwha Solutions is exploring various strategic options including the potential acquisition of Woongjin Energy, the company said in a filing on May 4, adding, “Nothing has been finalized.”

Woongjin Energy, founded in 2006 as a joint venture between South Korea’s Woongjin Group and US-based SunPower Corporation, is the only South Korean manufacturer of solar ingots and wafers after having survived stiff price competition from Chinese rivals. But it has been in the reorganization process since 2019. Creditors, including the state-controlled Korea Development Bank, together hold an 81.8% stake in the company.

Woongjin Energy turned profitable in 2008. But its earnings fell significantly from 2011 when the company lost orders from SunPower which offloaded its entire stake in the joint venture in that year.

Revenue was 88.7 billion ($69.6 million) in 2021, up from 34 billion won in the prior year. But Woongjin Energy continued to generate an operating loss of some 10 billion won for two straight years. Its plants in Daejeon and Gunsan, with a production capacity of 2 gigawatts each, stopped operation last year.


Hanwha Solutions is weighing whether to buy Woongjin Energy, probably to improve cost efficiency by achieving vertical integration of its solar business.

Before being merged with Hanwha Q-Cell and Hanwha Advanced Materials to create Hanwha Chemical in 2020, Hanwha Chemical, a polysilicon producer, purchased an 8.04% stake in Woongjin Energy to become the second largest shareholder in the company in 2017.

The move was part of its efforts to reduce costs through vertical integration. Polysilicon is used to make ingots and wafers. However, Hanwha Chemical cashed out its entire stake in Woongjin Energy in June 2018 and two years later exited its polysilicon business.

Last year, Hanwha Solutions reentered the polysilicon market by purchasing a sizable stake in REC Silicon, which has manufacturing facilities in the US, expanding its focus beyond photovoltaic cells and modules. The potential acquisition of Woongjin Energy by Hanwha Solutions could help further streamline operations of the solar panel maker.

Hanwha Solutions, which has been in the red since the fourth quarter of 2020, is expected to turn profitable in the third quarter this year. The company also predicted global demand for solar installations would rise far above 200 GW this year. (Reporting by Eun-a Jo)