Chinese solar company Tongwei plans to acquire a controlling 51% stake in competitor Runergy for around 5 billion yuan ($697.78 million). This strategic move would allow Tongwei to expand its presence in the United States, where Runergy is building a 5 GW solar module plant in Huntsville, Alabama. The acquisition involves a combination of capital boost and share purchase.
Runergy, which holds 57 GW of solar cells and 13 GW of module production capacity, is among several Chinese firms establishing operations in the U.S. to benefit from clean energy subsidies under the 2022 Inflation Reduction Act. The deal is seen as part of a broader consolidation trend in China’s solar manufacturing sector, which has been dealing with overcapacity and regulatory pressure to limit new investments. Despite being the fifth-largest Chinese solar module shipper in the first half of 2024, Tongwei reported a net loss of between 2.2 billion yuan and 2.5 billion yuan in the second quarter.