China WindPower Group Ltd, the largest non-state-owned wind farm developer in mainland China, is planning to spin off its tower tube manufacturing business, allowing it to expand into solar-energy equipment manufacturing.
The HK$5 billion ($600 million) company, which invests in wind power plants, said in a statement to the Hong Kong stock exchange on Monday that the spun off business would be undertaken by two indirect wholly-owned subsidiaries of the company.
"Tianhe will be the holding company of the spin-off business. Tianhe plans to gradually expand into solar-energy related equipment manufacturing," China WindPower said, adding that Tianhe New Energy Equipment would remain a subsidiary of the company.
In May, the wind power operator told Reuters it was looking for partners to build solar thermal power projects in China, banking on a boom in solar demand as the country strengthens support for clean energy.
China WindPower shares closed down 2.8 percent on Monday, underperforming the benchmark Hang Seng Index's 0.44 percent loss. ($1 = 7.790 Hong Kong Dollars)
