BANGALORE (Reuters) - JA Solar Holdings Co said it will buy wafer producer Silver Age Holdings in a $171.5 million stock deal to more than double its internal wafer capacity that can help it reduce cost of solar cells.
Costs of wafers, or substrates, constitute a major part of JA Solar's total cost of making solar cells. Increased internal capacity will also help JA Solar improve its gross margins, the the world's No. 2 producer of solar cells said.
The acquisition of Silver Age, which owns China-based wafer producer Solar Silicon Valley Electronic Science and Technology Co, will take JA Solar's internal capacity to 785 megawatt (MW).