SolarWorld chief executive Frank Asbeck said the merger would place the company in an excellent position to leverage the financial opportunities presented by the regulatory push for solar energy, especially in California.
The companies have agreed not to disclose the financial details of the sale.
Interestingly, Asbeck claimed the deal would probably be the last major consolidation in the market for some time.
“The other big international players are firmly in place. Big corporations with a lot of capital clout are behind them. From today’s point of view it is difficult to imagine that one of these large players might disappear from the market through a takeover,” Asbeck said.
Asbeck said that the majority of solar consolidations would most likely occur in low-capital research and development.
The assimilation of Shell’s crystalline solar manufacturing facilities is expected to increase SolarWorld’s production capacity by up to 80 megawatts.
Shell’s US manufacturing facilities are located in Washington and California, producing solar silicon crystals, wafers, cells and modules. Shell’s research and development centre in Munich and its solar cell manufacturing facility in Gelsenkirchen, Germany will also be transferred to SolarWorld.
Most of the Shell manufacturing facilities have not been producing at capacity due to a shortage in the supply of raw materials.
SolarWorld describes itself as an “integrated solar company”, as it has interests in all areas of its solar offerings, from the acquisition of the necessary silicon through to sales and after-service operations.
Asbeck said that the company expected the silicon shortage that has hampered the crystalline solar market to be resolved by 2008. In the meantime, it plans to use its own silicon resources to the US sites.
“At the beginning, we expect capacity utilisation of approximately 50 percent at the new locations,” Asbeck said.
“Under current plans, we hope to bring production up to full capacity by 2007-08.”
Asbeck said the company’s plans to expand its 30MW manufacturing facility in Frieburg, Germany would be unaffected by the integration of Shell’s crystalline solar assets.
SolarWorld has offered all Shell employees affected by the acquisition a one-year employment guarantee.
