Select Language:
Shares of the Chinese power equipment manufacturer declined after announcing plans to establish a new energy transformer joint venture factory in Thailand with an investment of up to CNY130 million (approximately USD18.86 million) to better serve international markets.
The stock closed down 5.4% at CNY45.54 (around USD6.62) per share today, while the overall Shenzhen market rose 0.8%. Over the past 11 months, the stock has more than tripled, reaching a record high of CNY49.38 on March 6, fueled by increasing demand for transformers from artificial intelligence data centers and the renewable energy industry.
The company’s Thai subsidiary will create a joint venture with Xindor Global, a firm controlled by the company’s main shareholder, and Canadian Solar Energy Holding Transformers, a new division of CS Renewable Ventures. This joint venture will manage the investment, construction, and operation of a new plant located in Si Racha, Chonburi province.
The company plans to retain a 51% ownership stake in the joint venture, with Xindor Global holding 19% and Canadian Solar Energy owning the remaining shares. The factory will primarily produce medium- and low-voltage distribution transformers, box-type transformers, and prefabricated substations, mainly supplying Canadian Solar Energy and its affiliates.
The plant will be engineered to meet all regulatory standards necessary for exports to the United States, though specific details regarding its launch date and annual production capacity have not been disclosed.
In recent years, the company has been expanding its manufacturing footprint internationally. Its first transformer facility in Thailand, capable of producing 6,000 units annually—focusing on new energy and distribution transformers—began operations last December, while its factory in Texas, with a capacity of 21,000 distribution transformers per year, became operational last October.
Additionally, a new energy transformer factory in Mexico, with nearly USD100 million in total investment and an annual capacity of 6,000 units, is expected to open mid-year.
The company’s main offerings include specialized transformers for data centers and industrial applications, renewable energy transformers for solar power and energy storage, and traditional distribution transformers. Its revenue increased 20% in the first half of last year compared to the previous year, driven mainly by the global growth in photovoltaic and energy storage projects, along with increasing demand for power equipment upgrades abroad.
ChatGPT
Perplexity
Gemini AI
Grok AI
