Delta to Expand into Solar Power

Delta Electronics (Thailand) Plc has been in talks to acquire US and European solar power equipment makers as it has earmarked $200 million to diversifying into electrical power over the next two years, according to a report in the Bangkok Post.

"If you want to do business in the US, you have to acquire a US company. And if you need more market share in Europe, you have to do the acquisitions," said Delta's President Henry Shieh.

"We are discussing with companies in the US and Europe in terms of shares and prices to make sure we do it right. About $100 million could be spent before 2012 and we have the capacity to double the amount." Those companies, according to Shieh, are $500 million businesses that are now having financial problems because of lower subsidies from governments in the face of the global recession.

Delta, the largest electronics firm on the Stock Exchange of Thailand by revenue and market capitalisation, says market conditions and its financial results have become more favourable for making new investments.

The market started to come back in June and July with some stocks depleting. Some urgent orders are placed this month, indicating that the demand is there, said Shieh.

Anusorn Muttaraid, Delta's Executive Director, said the talks with the US company were expected to be concluded this quarter while negotiations with European parties could finish in the final quarter.

Anusorn said the company forecast that 2009 revenue would be about $900 million, down from $1 billion made in 2008. Its plants are currently running at 65 percent of the maximum capacity, compared with 85 percent the same period of last year, he added.

Source: Bangkok Post