Canadian Solar shares rise on Samsung deal
Shares of Canadian Solar get a boost from news of deal with Samsung
NEW YORK (AP) -- Canadian Solar's U.S. shares soared Wednesday on news of a deal with Samsung Renewable Energy Inc. to open a new manufacturing facility in London, Ontario.
THE SPARK: The facility will produce solar modules and power stations and supply Samsung's Ontario solar projects. It also will serve as a hub for Canadian Solar to conduct research and product development related to solar energy generation.
Financial terms were not disclosed.
THE BIG PICTURE: With the agreement, Canadian Solar becomes Samsung's fourth renewable energy manufacturing partner in Ontario.
Canadian Solar Chairman and CEO Shawn Qu said the deal highlights his company's rapidly growing downstream solar power solutions business as it develops manufacturing capabilities for certain kinds of solar equipment.
Samsung said the plant will bring 200 manufacturing jobs to the London area by the end of 2013, as part of an agreement between the company and the Government of Ontario.
THE SHARES: Up $1.17, or 13 percent, to $10.09 in afternoon trading after peaking at $10.45 earlier in the day and coming with 20 cents of their 52-week high.
Since the beginning of this year, Canadian Solar shares have more than doubled.
