Hanwha Group, one of South Korea’s leading conglomerates, said Monday that it has decided to merge its two solar energy affiliates ― Hanwha SolarOne and Hanwha Q-CELLS ― to sharpen its competitive edge in the global solar energy market.

To that end, Hanwha SolarOne will swap its new shares for a 100 percent stake in Hanwha Q-CELLS held by Hanwha Solar Holdings Co, which is a holding company of the two solar energy companies, the group said.

The merged entity slated to be launched in the first quarter of next year will be based in Seoul, while the headquarters of Hanwha Q-CELLS in Talheim, Germany, will be changed into a technology renovation center.

The merged company will have a production capacity of 3.28 gigawatts of solar cells that convert sunlight into electricity, becoming the world’s biggest solar cell manufacturer.

Hanwha launched its solar energy business in August 2010, when its chemical unit, Hanwha Chemical Corp., acquired Hanwha SolarOne, formerly known as Solarfun Power Holdings, a Chinese solar modules manufacturer.

Two years later, Hanwha Chemical took over the German solar cell maker Q-Cells, which filed for bankruptcy in April 2012 amid an industry-wide slump.

“The merger will create synergy (in its solar energy business),” the group said.

The merged company will be headed by Nam Seong-woo, the head of Hanwha SolarOne, Hanwha said.

The South Korean conglomerate is speeding up the reorganization of its business portfolio. Last month, it said that it will acquire four companies, including Samsung Techwin Co., which is affiliated with the country’s top conglomerate, Samsung Group, for about 2 trillion won ($1.8 billion won). (Yonhap)