Taiwan-based solar firm Neo Solar Power (NSP) and power supply maker Delta Electronics announced consolidation plans on November 19, 2012. NSP will procure 15% of DelSolar (the solar subsidiary of Delta) shares publicly then form a new company. Delta will provide funding of NT$1.5 billion (US$51 million) and will own a 17% stake in the new firm, making Delta the biggest shareholder.
The management team of NSP will likely continue to dominate while the management team of DelSolar which may experience fluctuations due to the merger.
DelSolar currently has a solar cell capacity of 440MW at its plant in Wujiang, China. DelSolar also has solar cell capacity of 160MW at its Zhunan plant in Taiwan. Solar makers noted that DelSolar's current orders have not been able to fill its total capacity, in addition, NSP's current capacity utilization rate is around 60-70%, which may pose a problem for the newly-merged firm.
According to NSP, both firms have been controlling possible costs from long-term material contracts. Furthermore, the two firms have a total of 240MW of module capacity, which will help the new firm entering the end market.
