- Hanwha Solutions has proposed to undertake major restructuring of the business to focus its resources on solar energy
- It plans to carve out advanced materials and solar materials business from itself into Hanwha Advanced Materials
- Proceeds will be used to strengthen solar PV manufacturing in the US and also build a EVA sheet factory in the North American nation
South Korea’s Hanwha Solutions Corporation has announced major business restructuring with plans including divestment of some stake in advanced materials business to use proceeds for US solar PV manufacturing facilities and to build an EVA film factory in the US.
Currently Hanwha manages 5 business divisions which it now has proposed the company board to be chopped down to 3, namely for Q Cell for solar power, chemicals, and Insight. The last segment will focus on solar power development in Korea.
“The funds secured through the sale of the stake will be invested in the expansion of US photovoltaic manufacturing facilities, which are expected to improve profitability in the future with the passage of the Inflation Reduction Act (IRA),” announced the company.
Currently, Hanwha Solutions comprises renewable energy, chemicals, advanced materials and retail business of Galleria. The carve out process will see Galleria being spun off as a separate business directly under Hanwha Group.
At the same time, automotive material and solar materials businesses will go under Hanwha Advanced Materials. Funds raised from this step will be used to expand the company’s US solar business. The new Hanwha Advanced Materials will be launched in December 2022.
“We will strengthen our lightweight composite material business to improve fuel efficiency of vehicles in line with the growing demand for eco-friendly vehicles and attract investment to build an EVA sheet factory in the United States, an essential material for maintaining solar cell performance,” said Advanced Materials CEO Kim In-hwan.
After the carve out, Hanwha Solutions plans to absorb the hydrogen tank business, which is expected to grow rapidly in the future, into the chemical sector to maximize synergy with eco-friendly energy businesses such as solar and wind power.
“At the time when the full-scale growth of the solar industry begins in the United States and Europe, we will simplify the business structure and secure investment funds to grow into a global top-tier energy company. In addition, we will do our best to maximize shareholder value,” said Hanwha Solutions CFO Shin Yong-in.
Hanwha Group’s Qcells currently operates 1.7 GW solar module fab in the US and recently announced plans to expand here with a new fab having 1.4 GW TOPCon production technology. To ensure its supply chain is local, the company has also invested in polysilicon company REC Silicon (see Qcells Picks Georgia For 1.4 GW US Module Fab).