Case study

Suntech Power Holdings is a solar energy company based in Wuxi, China. It uses photovoltaic (PV) cell technology to convert sunlight into electricity. Its products provide clean electricity for residential, commercial, industrial and public utility markets worldwide. The company sells to Germany and Spain, as well as China and the United States, with the vast majority of its sales coming from abroad. Given mounting concern over global warming, alternative, cleaner sources of electricity are proving popular. Suntech, currently the tenth largest solar cell manufacturer, is growing fast with an annual production capacity of 120 megawatts (MW). It achieved profitability in 2003 – its second year of operations – and by 2005 reported net revenues up 165% to US$226m over 2004. The company is committed to becoming the ‘lowest cost per watt’ provider of PV solutions to customers worldwide.

• Increased annual sales up to 165% in 2005.
• 1,282 employees.
• Actis's remaining stake worth around US$170m as at end January 2006.
• Suntech has gained access to valuable expansion capital in a fast-growing market.
• Actis's input has helped improve corporate governance and the recruitment of key positions, such as chief financial officer.
• Through its experience of market opportunities in developing economies Actis is helping Suntech identify and enter new markets.
• Increased availability of PV cell technology.
• In December 2005 Suntech launched its IPO at US$15 per share and subsequently the price rose a further US$10 by July 2006.