On November 12, Tongwei Co., Ltd. released an announcement in response to recent media reports concerning partial production suspensions at Jiangsu Runyang New Energy Technology Co., Ltd. (“Runyang”). As previously disclosed, Tongwei is in the process of acquiring at least a 51% equity stake in Runyang through capital increase and share acquisition from relevant shareholders. To address market concerns and provide clarity to investors, Tongwei offered the following update:
Since signing the agreement, Tongwei has mobilized its business teams and intermediary institutions to conduct a thorough due diligence, audit, and assessment of Runyang. This work remains ongoing, with all parties actively negotiating transaction-related details. Tongwei noted that adjustments or even termination of the original acquisition plan remain possible. Concurrently, parties are exploring alternative integration options, with further details to be disclosed upon substantial progress or changes.
According to recent media reports, Runyang’s overseas projects have been affected by temporary production halts. An internal document from Runyang's fourth-phase module plant in Thailand cited “policy and market demand factors impacting order stability, thus affecting production continuity.”
Production at this facility was suspended as of November 7, with the suspension anticipated to last until January 5, 2025. During this period, Runyang will pay affected employees 75% of their wages, in line with Thailand’s labor protection laws. Runyang's other facilities in Thailand are also affected, with reports indicating that its cell manufacturing plant has suspended operations from November 9 to November 30, pending further notice.
This series of production suspensions adds uncertainties to Tongwei's acquisition plan. In August, Tongwei announced its intention to invest up to RMB 5 billion in Runyang, aiming for a controlling stake. If finalized, this transaction would mark the largest merger in the photovoltaic industry to date.
Source：Solarzoom
