Hanwha Solutions sells stakes in advanced materials units

Hanwha Solutions sold its stakes in its advanced materials subsidiaries to a private equity firm for 680 billion won ($514.2 million), the company said in a regulatory filing Friday.

The money will be used to boost its solar businesses in the United States, the company said.

A 47.24-percent stake in Hanwha Advanced Materials, which will be split off from Hanwha Solutions to a separate company next month, and another 47.24-percent of HAM Holdings, Hanwha Solutions’ wholly-owned car materials subsidiary in the United States, were acquired by Glenwood Credit, a private equity firm.

The deal came two months after the company announced a restructuring plan to put more focus on solar power.

Hanwha Solutions has been operating in five separate business sectors: renewable energy, petrochemicals, advanced materials, retail and city development. In September, the company decided to spin off its retail unit and split off part of the advanced materials unit.

Of the 680 billion won, 500 billion won will be spent on expanding the production capacity of its U.S. solar module plant, which is expected to benefit from tax credits thanks to the U.S. Inflation Reduction Act starting next year.

The remaining 180 billion won will be invested in the lightweight hybrid material business, which is expected to grow due to electric vehicle market expansion and the solar panel film business.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]