Taiwan’s Tatung allies with Sojitz, Shikoku Electric in solar power projects

24, Jun. 2020

(Photo courtesy of Tatung Co.)
(Photo courtesy of Tatung Co.)

TAIPEI, NNA – Taiwan’s home electronics and power equipment maker Tatung Co. is teaming up with major Japanese trading house Sojitz Corp. and regional utility Shikoku Electric Power Co. in solar power business in Taiwan.

Tatung said Monday it will sell all the shares in Chih Kuang Energy Co., its renewable energy arm, to a planned joint venture to be established by the two Japanese firms while Tatung retains preferred shares in the clean energy unit.

Spokespersons for both the trader and the utility said they are still in talks with the Taiwanese company.

Tatung will first inject NT$250 million ($8.5 million) into Chih Kuang Energy to boost its capital to NT$650 million and subsequently sell 100 percent ordinary shares worth NT$819 million to the duo’s local venture, which is under the review of the Ministry of Economic Affairs for the establishment, Tatung said in a statement.

Chih Kuang will embark on the construction of the first phase of a solar power plant with an output capacity of 85,000 kilowatts in the second half of this year.

The clean power station, Tatung’s single largest solar power plant, will supply electricity to fish farms in the southern city of Tainan, according to the statement.

Tatung has been gearing up to construct solar power plants on the island with a total of 140,000 kw output capacity built at over 800 locations. It plans to boost the capacity to 200,000 kw this year and 500,000 to one million kw within three years, according to a report by the Taipei-based Economic Daily.

Tatung’s intention is to gain expertise in the construction and operation of solar power plants through the partnership with the two Japanese firms and to seek more business opportunities in and outside Taiwan, it said in the statement.