Yingli Green Energy Holding Co. Ltd.’s YGE European subsidiary, Hainan Yingli New Energy Resource Co, LTD. ("Hainan Yingli"), has formed a joint venture (“JV”) with a Demeter Corporation PLC subsidiary, Demeter Power Company Limited.

The JV aims to set up a new solar panel factory in the Pruckdang district in Rayong, Thailand, which will have an annual capacity of 300 megawatts (“MW”) of photovoltaic (“PV”) panels.

Per the agreement, Yingli will have a 40% stake, while Demeter holds the remaining 60% in in the JV, which has a capital investment of around $19 million. Yingli will sell the panels under its own brand name. Operations are expected to begin in the second half of 2016.

The Yingli-Demeter JV marks Yingli's foray into territories outside China and continued growth in the company’s international business. According to Yingli, manufacturing PV panels in Thailand will allow the company to compete more aggressively in overseas markets as well as in the emerging markets of Southeast Asia.

Demeter is a Thailand-based developer, engineering, procurement and construction service provider, and operator of renewable energy projects.

Yingli Green Energy Holding Company Limited, on the other hand, is a leading vertically integrated manufacturer of photovoltaic products based in China. Yingli manufactures the entire photovoltaic value chain, including ingot casting and wafering, solar cell production and solar panel assembly.

Zacks Rank

Yingli Green currently has a Zacks Rank #4 (Sell). JA Solar Holdings Co., Ltd. JASO, ReneSola Ltd SOL and First Solar, Inc. FSLR are some better-ranked stocks in the solar industry. While JA Solar and ReneSola sport a Zacks Rank #1 (Strong Buy), First Solar carries a Zacks Rank #2 (Buy).

• [Editor:tianyawei]