Chaori Solar unveils new expansion plans

From the capital raised by the Chinese company following its listing on the Shenzhen Stock Exchange on November 18, 2010*, a number of new initiatives have been announced.

Firstly, it is looking to set up two new production lines: a 100 megawatt (MW) line for polycrystalline cells (ingot to cell) in Luoyang; and a 50 MW monocrystalline cell line (wafer to cell) in Shanghai.

Furthermore, Chaori Solar says it wants to increase its current photovoltaics module capacity this year by 100 MWs to reach 500 MWs. In a statement, the company explained: "Expanding the cells and modules will not only resolve difficulties with supply to the cells, but will also meet the increasing needs of clients – thereby overcoming two significant obstacles for the company’s development."

Plans to establish a research and development (R&D) center, in order to improve the company’s existing manufacturing equipment and promote the research of new products, were also outlined, as was its desire to become a fully vertically integrated solar company. To achieve this, the company says the funds achieved through its initial public offering will help it to extend the business of building solar park structures.

The company adds that increasing the essential circulating capital will help it to improve its solvency and overall financial conditions.

* Shanghai Chaori Solar Energy Science & Technology Co., Ltd was listed on the Shenzhen Stock Exchange on November 18, 2010 (stock code 002506), where it sold 66 million shares on the open market with a price of 36 RMB (around USD$5.4; €4.08) per share, or a total of 2.376 billion RMB (around USD$359.5; €269.8 million). After listing, the earning per share is 0.62 RMB (around USD$0.09; €0.07).