October 3 (Solar) – United Renewable Energy Co Ltd (UREC), the company that will combine the business of Taiwanese solar manufacturers Gintech Energy (TPE:3514), Solartech Energy (TPE:3561) and Neo Solar Power (TPE:3576), is already operational.
As announced in October 2017, the three loss-making sector players had agreed to merge their operations into a single company, with Neo Solar becoming the surviving entity and changing its name to UREC. The name change will become effective next month, following the completion of certain procedures, the Taipei Times reported on Tuesday.
The announcement brought down Neo Solar's shares to TWD 10.1 (USD 0.329/EUR 0.284), their lowest level in about two weeks.
The government of Taiwan has committed to take a stake in the newly-formed company through the National Development Fund and Yao-Hwa Co Ltd by subscribing to shares under private placements. Following the merger, UREC will supply photovoltaic (PV) modules with a better cost structure, while it will gradually lower its annual solar cell production capacity to 3 GW over three years by shutting down some plants amid weak demand, according to local media reports.
(TWD 10 = USD 0.326/EUR 0.282)