SAFETY, a major supplier for steel cables for elevators and other applications, recently announced that it will be entering the market for PV products as part of its long-term growth strategy. Its wholly-owned subsidiary Suzhou SAFETY Investment Management and Suzhou Hexin New Energy have formed a new joint venture provisionally named “Suzhou SAFETY New Energy Technology”. The actual name of the joint venture will be revealed following the completion of the business registration process. This announcement was first picked up by other Chinese news websites.
The registered capital of the joint venture is set at RMB 200 million, of which SAFETY and Hexin have contributed RMB 102 million (51%) and RMB 98 million (49%) respectively. The joint venture will be primarily focusing on the development, manufacturing and sales of P-type and TOPCon cells. Additionally, it will manufacture the related key components and equipment and provide services for the downstream sections of the PV industry chain.
SAFETY stated that the formation of the joint venture aligns with its business strategy as the deal expands its portfolio and improves its overall competitiveness. In particular, the deal will further optimize the company’s asset structure, thereby having a positive effect on the company’s future financial performance and operation. SAFETY also emphasized that the deal is not detrimental to the interests of the company and its shareholders, especially small and medium ones.
According to the information on its official website, SAFETY was established in June 2005 from the predecessor known as Wuxi Steel Cable Factory that was established in 1958. The company was listed on the Shanghai Stock Exchange on March 31, 2016. The company has been touted as a “high-tech enterprise”, “key national enterprise with an IP advantage”, “service-oriented enterprise of Jiangsu”, and “private technology enterprise of Jiangsu”. With more than 60 years of experience in the manufacturing of metallic cables, SAFETY remains China’s leading domestic supplier for cables used in elevators and cranes.
There are many subsidiaries operating under SAFETY: SAFTEY Wire Rope, Jian Feng Sling, Jiang Feng SAFETY (Hong Kong), Guangzhou RAIPEM Testing, Jiangsu SAFETY New Material Technology, Tong Ren Architectural Design (Suzhou), Jiangsu Wuzhong Construction Engineering Quality Testing Center, SAFETY Mechanical and Electrical Services, and Suzhou SAFETY Investment Management.