November 4, 2014 – Ascent Solar Technologies, Inc. has been granted a Business License, as well as the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the People’s Republic of China. In December of 2013, Ascent and the Suqian Municipality of Jiangsu Province agreed to create a Joint Venture to build a manufacturing facility in China, but Ascent has been waiting for this paperwork, which is a key milestone.
Under the terms of the agreement, Suqian agreed to provide a cash injection of $32.5 million dollars, as well as 5-years free usage of the newly built manufacturing facility, alone with a 5-year tax holiday and significant trade incentives. In return, Ascent will provide proprietary technology, equipment and know-how to operate the plant as well as a nominal amount of cash. Ascent’s ownership in the JV will progressively grow up to 80% of the JV after all of these items are completed. Ascent expects that certain components of the JV factory will be in operation by the end of Q1 2015.
Ascent, of Thornton, Colorado is a manufacturer of state-of-the-art, flexible thin-film photovoltaic modules integrated into off-grid applications and the company’s EnerPlex™ series of consumer products.
“We are pleased to have this approval from the appropriate government agencies, which has gone through a stringent process including lengthy feasibility studies and environmental impact assessments”, said Victor Lee, President and CEO of Ascent. “As we build and transfer much of our manufacturing operations to Suqian, we expect to dramatically reduce our production costs, logistics costs, and overhead costs among others, enabling meaningful improvements in margin as we ramp up the production capacity. The factory also provides close proximity to the region exhibiting tremendous growth for consumer electronic products like EnerPlex.”
As announced on June 23, 2014, Suqian has ascribed a value of RMB 400 million (approximately $77 million dollars) to Ascent’s proprietary technology, representing 48% of Ascent’s required contribution to the JV.