SAN FRANCISCOMotech Industries Inc., the Taiwan-based solar cell manufacturer that is 20 percent owned by chip foundry TSMC, has signed an agreement to acquire GE Energy's Delaware solar module assembly operation, the company announced Monday (Dec. 28). Financial terms of the deal were not disclosed.
The plant, located in Newark, Del., assembles crystalline silicon based photovoltaic modules and currently employs 75 people, according to Motech (Tainan, Taiwan), the largest solar cell manufacturer in Taiwan.
With the purchase, Motech gains the right to use GE Energy's module trademark for two years, Motech said. As a condition of the purchase agreement, Motech will be required to maintain GE's standards for solar module manufacturing at the site, the company said.
The agreement also calls for Motech to assume the responsibility to provide warranty services to GE's existing module clients, Motech said.
Motech has been a supplier of solar cells to GE Energy for the past four years, the company said.
"We will do our best to maintain the high quality and safety standards GE has established at this factory," said Simon Tsuo, Motech chairman and CEO, in a statement.
The transaction is subject to customary closing conditions and is expected to close early next month, Motech said.
Earlier this month, TSMC (Hsinchu, Taiwan) announced it would pay NT$6.2 billion (about $192 million) for a 20 percent stake in Motech.