China's Sanhua invests in Israeli solar firm

China's Sanhua invests in Israeli solar firm

Zhejiang Sanhua to invest $10.5 million in solar thermal systems developer HelioFocus

TEL AVIV [WorldofSolarThermal.com]

* Sanhua to invest $10.5 mln in Israel's HelioFocus

* Sanhua to hold 30 pct, IC Green Energy 40 pct

* Chinese firm to do some manufacturing for HelioFocus

Zhejiang Sanhua 002050.SZ signed an agreement on Tuesday to invest $10.5 million in solar thermal systems developer HelioFocus, marking the first direct investment by a Chinese company in an Israeli firm.

HelioFocus Chief Executive Uri Zik said Sanhua, a producer of components and control parts for air-conditioning systems, would be not just a financial investor in the company, but will also produce some solar thermal components.

"We will be able to reduce costs and move relatively quickly to manufacturing," Zik told Reuters. "Components that can be made at lower cost in China will be produced there."

Sanhua, which will hold 30 percent of HelioFocus, will invest $9.25 million directly in the company and will acquire $1.25 million worth of shares from its founders....

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Source: Reuters