Hanwha Solutions Monetizes KRW 200 Billion in Advanced Manufacturing Production Credits
Partial Sale of Last Year's AMPC Credits
Anticipation for Completion of North America's Largest Solar Manufacturing Complex
"Stable Cash Flow, Strengthening Foundation for Long-Term Growth"
Hanwha Solutions announced on May 21 that it has sold approximately KRW 200 billion (USD 130 million) worth of Advanced Manufacturing Production Credits (AMPC) it received last year.
The AMPC system provides tax credits for solar products manufactured in the United States. Hanwha Solutions produces solar modules at its Dalton and Cartersville plants in the U.S., receiving AMPC at a rate of about 7 cents per watt.
The company stated that from 2023 through this year, it has received a total of KRW 1.3 trillion in AMPC, and including this latest transaction, has sold a cumulative total of KRW 1.13 trillion (USD 812 million) worth of credits. The company is currently negotiating the sale of the remaining AMPC credits for this year.
Hanwha Solutions also received about KRW 220 billion in AMPC during the first quarter of this year. The company expects that once 'Solar Hub,' the largest integrated solar manufacturing complex in North America, is completed, the scope of tax credits will expand to include cells and wafers, enabling it to secure over KRW 1 trillion in AMPC annually.
Following the completion of the Cartersville plant this year, the company projects that its annual AMPC receipts will reach approximately KRW 1 trillion (USD 675 million).
Hanwha Solutions explained that the AMPC monetization is significant not only for securing liquidity, but also because it demonstrates the market value of tax credit assets generated from its North American manufacturing base.
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Hanwha Solutions CFO Lee Jaebin stated, "We plan to continue securing stable cash flows and improving our financial structure through ongoing AMPC monetization," adding, "We will focus on strengthening our foundation for long-term growth."
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